Firms that shut down must be earning negative profits in the short run.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Refer to the table above. If the income of the consumer is $24, the optimal choice contains:
A) 1 quart of juice and 1 quart of milk. B) 3 quarts of juice and 4 quarts of milk. C) 4 quarts of juice and 4 quarts of milk. D) 4 quarts of juice and 5 quarts of milk.
Farmer Ted sells winter wheat in a perfectly competitive market. The market price for a bushel of winter wheat is $9. Ted has 270 bushels of wheat to sell. If his total variable cost is $2000 and his total fixed cost is $500, then
a. Ted should raise his price. b. Ted is minimizing his losses. c. Ted is earning positive economic profits. d. Ted is earning a normal profit
If an economy’s resources are fully employed,
A. a great deal of unemployment will be needed to achieve even a small reduction in inflation. B. the aggregate supply curve (and thus the Phillips curve) will be flat. C. the aggregate supply curve (and thus the Phillips curve) will be steep. D. Both a and c are correct.
When households hold money for unplanned expenditures and emergencies, it is called
A. the precautionary demand for money. B. the transactions demand for money. C. the irrational demand for money. D. the speculative demand for money.