If a perfectly competitive firm faces a price below its average total cost but above the shutdown point, it should stay open
a. True
b. False
Indicate whether the statement is true or false
True
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Assuming all else equal, if the production technology available to a nation improves, its aggregate production function:
A) shifts inward. B) becomes vertical. C) shifts upward. D) becomes horizontal.
A negative externality is
A. a type of tax. B. a type of subsidy. C. a type of money price. D. linked to external costs. E. linked to external benefits.
Willie Stand obtains a patent on his new invention, the bipod. After twenty years,
a. he can renew his patent b. new entrants will begin bipod production if price exceeds average variable cost c. new entrants will drive up the price of the bipod d. Willie will eventually earn no more than a normal profit e. Willie will continue to earn a positive economic profit, because entry will not affect the price of bipods
The exchange rate of the dollar relative to other currencies is determined by market forces. When equilibrium is present in the exchange rate market,
What will be an ideal response?