In the short-run, a firm's decision to shut-down should not take into consideration
a. Avoidable costs
b. Variable costs
c. Fixed costs
d. Marginal costs
c
You might also like to view...
The most basic concept of economics is
A) self-interest. B) scarcity. C) demand. D) rationality.
What is the equilibrium price and quantity of CFC-11 before the excise tax?
Consider the following market for CFC-11, a known ozone-depleting substance: Demand: Q= 20 – 1.5P Supply: Q= 5+0.5P whereP is price per pound. Assume the governmental authority imposes a $5 per pound excise tax on CFC-11, which shifts the supply function to Q’ = 2.5 +0.5P.Use this information for any or all of the next three questions below. a. P = $8.75; Q = 5 c. P = $6.875; Q = 8.75 b. P = $7.5; Q = 8.75 d. none of the above
An economy with a trade surplus will experience a net inflow of international financial capital
a. True b. False Indicate whether the statement is true or false
"Exotic" mortgages became popular in part because home prices were expected to
A. rise quickly. B. become increasingly unpredictable. C. fall precipitously. D. remain virtually constant.