If a firm shuts down it
A) will produce nothing but must pay its fixed and variable costs.
B) will suffer a loss equal to its fixed costs.
C) will earn enough revenue to cover its variable costs but not all of its fixed costs.
D) will produce nothing but must pay its variable costs.
B
You might also like to view...
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If there is the expectation that the Swiss franc will rise in value in the near future, then in the spot market:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
Which of the following is a tax on labor?
a. Medicare tax b. Social Security tax c. federal income tax d. All of the above are labor taxes.
Golden Rule of Cost Minimization - to minimize cost, the firm should employ inputs in such a way that the _______________ per dollar spent is equal across all inputs.
Fill in the blank(s) with the appropriate word(s).
Under a head tax, the amount of tax paid is:
A. a linearly increasing function of the taxpayer's income. B. the same for all taxpayers who use the public good. C. proportional to each taxpayer's income. D. the same for all taxpayers.