A firm will shut down in the long-run if
a. P>AVC
b. P
d. P>ATC
b
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When input prices are fixed, decreasing returns to scale implies that the long-run average cost curve is
a. downward sloping. b. horizontal. c. upward sloping. d. U-shaped.
The Great Depression that started in 1929 was
A) confined only to the United States. B) confined only to the United States and Britain. C) confined only to the United States and Europe. D) a global phenomenon. E) confined only to the Americas.
The sum of the MPC and the MPS is always:
a. greater than 1. b. less than 1. c. equal to 1. d. equal to zero. e. between 0 and 1.
Brokerage commissions:
A. are always a percentage of the amount of the trade. B. can differ reflecting the different services being offered. C. can vary but typically don't because firms tend to set them at the same levels. D. are set by government regulators so they cannot vary across firms for the same services.