Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit.
b. stay in operation in the short-run.
c. shut down.
d. none of these.
c
You might also like to view...
What we produce during our working time is ________ as part of GDP and the enjoyment we gain from our leisure time is ________ as part of GDP
A) included; not included B) included; included C) not included; included D) not included; not included
Refer to Scenario 19-1. The value added of CANOES-R-US for each canoe equals
A) $1,200. B) $800. C) $500. D) $400.
The higher the transaction cost of an exchange, the lower the probability of the exchange taking place between the buyer and the seller
Indicate whether the statement is true or false
A tax increase has
a. a multiplier effect but not a crowding out effect b. a crowding out effect but not a multiplier effect c. both a crowding out and multiplier effect d. neither a multiplier or crowding out effect