Answer the following questions true (T) or false (F)
1. In the short run, a firm might choose to produce rather than shut down even if its market price is less than its average total cost of production.
2. If a firm's total variable cost exceeds its total revenue, the firm should stop production by shutting down temporarily.
3. The short-run supply curve for a perfectly competitive firm is that part of the firm's marginal cost curve that lies above the minimum point of its average variable cost curve.
1. TRUE
2. TRUE
3. TRUE
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It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico
A) increased; $1038 B) increased; 5 percent C) decreased; $2013 D) decreased; 5 percent
If you want to know the present value of a future payment received in one year, what formula can you use?
A) Present value equals future payment divided by one plus the rate of interest. B) Present value equals future payment times the current market rate of interest. C) Present value equals future payments times one plus the rate of interest. D) Present value equals one plus the rate of interest in decimals divided by future payment.
Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. delaying expenses if just short of a target c. accelerating sales once a target is met d. delaying expenses costs once a target is met
The most liquid asset is
A. gold. B. a vehicle. C. stocks of a highly profitable company. D. money.