If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE?
A) p < AVC for all levels of output.
B) p < AVC only for the level of output at which p = MC.
C) p < AVC only if the firm has no fixed costs.
D) The firm will earn zero profit.
A
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Marginalism is
A. the study of how societies choose to use scarce resources. B. the process of analyzing the additional costs or benefits arising from a decision. C. the best alternative that we forgo when making a decision. D. a market situation in which profit opportunities are eliminated almost instantaneously.
One reason customers do not care about the quality of their bank's assets is:
A. most people cannot distinguish an asset from a liability. B. with deposit insurance, there isn't any real reason to care; their deposits are protected even if the bank fails. C. the quality of a bank's assets changes almost daily. D. they assume the bank only has high quality assets.
If the price of Diet Pepsi rises, what happens to the price of Diet Coke?
A. It will rise. B. It will fall. C. It will remain the same. D. There is no way of telling what will happen to the price of Diet Coke.
Examples of employment discrimination would include
A. the legendary Negro league pitcher Satchel Paige who was not allowed to pitch in the major leagues until he was in his late 40s. B. the large majority of women in the 1950s and 1960s who were typists or secretaries. C. the attitude that typing, filing and other clerical positions were "women's work". D. all of the examples are true.