The shutdown condition for a firm is to
A. shutdown if price is less than marginal revenue.
B. shutdown if losses are made.
C. shutdown if price is less than Average Variable Cost.
D. shutdown if price is less than Average Total Cost.
Answer: C
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Where a free-rider problem exists, goods tend to be: a. underproduced
b. overproduced. c. high-priced and available only to the rich. d. low priced and available only to the poor.
Most studies of mineral abundance have assumed that
a. Resources are relatively smoothly distributed in the earth's crust b. Resources are unevenly distributed in the earth's crust c. Resource prices will continue to rise in the near future d. Economically recoverable reserves will decrease in the near future e. The economic supply of resources will remain fixed
The most important determinant of the decisions to lend or borrow is the real rate of interest.
Answer the following statement true (T) or false (F)
When there are more substitutes for a product, the ________ for the product is ________.
A. income elasticity; greater B. demand; less price elastic C. income elasticity; smaller D. demand; more price elastic