Which statement is true?
A. A firm will operate in the short run if total revenue is greater than variable costs.
B. A firm will shut down if variable costs are greater than total revenue.
C. A firm is operating at peak efficiency if its average total cost is held to a minimum.
D. All of the statements are true.
D. All of the statements are true.
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Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of income, y* = 800, the level of saving is
A) 0. B) 50. C) 100. D) 300.
Compared to a negative income tax, the federal personal income tax is thought of as a way to promote greater equality. Why?
What will be an ideal response?
If the demand curve for agricultural products is inelastic and farmers as a group become more productive, then prices of agricultural goods will __________ and total revenue earned by farmers will __________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease E) We cannot answer this question without knowing how inelastic the demand curve is.
Refer to Exhibit 2-8. Who has the comparative advantage in the production of good Y?
