A catfish farmer will shut down production when
A. He is losing money.
B. The best he can do is break even.
C. Price falls below AVC.
D. Total revenue falls below total costs.
Answer: C
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Refer to Figure 22-4. Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?
A) B to D B) E to B C) B to E D) A to B to C
If a recession were to reduce the demand for loans, ceteris paribus,
A) the interest rate will increase. B) the interest rate will not change. C) the interest rate will decrease. D) the number of loans will increase.
An example of price discrimination is the price charged for:
a. a postage stamp. b. theater tickets that offer lower prices for children. c. an economics textbook at a campus bookstore. d. Any of these.
Cartels frequently break down in the long run because
a. they are illegal b. tacit collusion is illegal c. contracts and agreements are legally binding d. cooperative behavior usually lowers profits for the entire industry e. members have an incentive to increase output