If the market price falls below a firm's minimum average total cost, the firm should:
A. definitely stop production.
B. definitely continue to operate at a loss.
C. consider how to minimize its losses.
D. pay only fixed costs.
C. consider how to minimize its losses.
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If Helen gives up the opportunity to bake 40 cakes for each room she paints and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is true?
a. The opportunity cost of painting is higher for Helen. b. The opportunity cost of baking cakes is lower for Josh. c. The opportunity cost of painting one room is 1/40 of a cake for Helen. d. The opportunity cost of baking one cake is 60 rooms painted for Josh. e. The opportunity cost of cakes cannot be computed.
In the short-run macro model, if aggregate expenditure is less than GDP, output will
a. decline as firms cut production to stop the buildup of inventories b. decline as firms increase their prices to stop the buildup of inventories c. increase as firms increase production to try to stop depletion of inventories d. increase as firms cut their prices to try to stop depletion of inventories e. remain unchanged indefinitely unless government takes action
When Dr. Katy Stack treats a military veteran at a veterans' administration hospital, the money she receives is part of the _________ category(ies) of government spending
a. educational b. veterans' benefits c. public assistance d. international aid e. income support, Social Security, and welfare
For any competitive labor market, what change would have to occur to cause the labor supply to decrease and shift the supply curve left?
A. Opportunity cost of work increases B. None of these statements is true. C. Number of workers increases D. Number of firms increases