If a firm shuts down in the short run,
a. it exits the industry
b. losses would equal its variable costs
c. losses would equal its fixed costs
d. profits would be zero
e. losses would equal to zero
C
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Use the following graph showing cost curves for a perfectly competitive firm to answer the next question.
If the market price decreases to $0.55, the profit-maximizing quantity of output is
A. 0. B. more than 20, but less than 35. C. 20. D. 15.
In the prisoners' dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
Moral hazard exists chiefly because of
A) economies of scale. B) diseconomies of scale. C) private information. D) public information.
An increase in wages will shift the supply curve up and to the left.
Answer the following statement true (T) or false (F)