If the shut down rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?
In the short run there are fixed costs, but in the long run all costs are variable. In the long run the average variable cost is usually higher than in the short run.
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Use the following diagram of the market for money to answer the next question.
The downward slope of the money demand curve Dm is best explained in terms of the
A. asset demand for money. B. wealth or real-balances effect. C. direct or positive relationship between bond prices and interest rates. D. transactions demand for money.
Because the price elasticity of supply for jumbo jets is 0.35, the supply of jumbo jets is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic. E) perfectly inelastic.
What are the three ways that the government redistributes income in the United States? Briefly discuss each
What will be an ideal response?
In order for a Pareto improvement to occur, someone must suffer a loss so that others may benefit from the improvement
a. True b. False