A perfectly competitive firm shuts down if the price of its product is
A) greater than its minimum average variable cost.
B) less than its minimum average variable cost.
C) greater than its maximum variable cost.
D) less than its minimum total cost.
B
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How does scarcity affect the range of possible choices that decision makers face?
a. It narrows the choice to a single option. b. It narrows the range of choices. c. It increases the possible methods for solving problems. d. It clarifies the choices by highlighting the best solutions. e. It simplifies the choices and therefore widens the range.
Professor Gordon posits that the best years of U.S. growth are behind us because of four "headwinds," which are:
a. lackluster growth and poverty b. demographids and education c. debt and inequality d. a and b only e. b and c only
A competitive firm currently produces and sells 500 units of output. Its total revenue is $6,000; the marginal cost of producing the 500th unit of output is $14.50; and the average total cost of producing the 500th unit of output is $9.50 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
Which of the following is consistent with the equation of exchange?
A) Total spending must equal the total sales revenues of business firms. B) The money supply multiplied by velocity must equal GDP. C) The money supply multiplied by velocity must equal the price level times Real GDP. D) a and b E) a, b and c