A firm should never produce any output if
A) P < AVC.
B) P < ATC.
C) AR < ATC.
D) MR < MC.
A
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Given the budget line in the above figure, what is the household's real income in terms of pizzas per month?
A) 5 pizzas per month B) 4 pizzas per month C) 3 pizzas per month D) All of above represent the household's real income.
Suppose the dollar rises from 100 to 125 yen. As a result,
a. imports from Japan will likely increase. b. exports to Japan will likely increase. c. Japanese tourists will be more likely to visit the United States. d. U.S. businesses will less likely use Japanese shipping lines to transport their products.
Say's Law implies that:
A. Wages and prices are fixed. B. Full employment equilibrium is unlikely. C. Whatever is produced will be sold. D. Unemployment causes inflation.
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.