If at the MC = MR output, AVC exceeds price:
A. new firms will enter this industry.
B. the firm should produce the MC = MR output and realize an economic profit.
C. some firms should shut down in the short run.
D. the firm should expand its plant.
Answer: C
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If demand is inelastic, the absolute value of the price elasticity of demand is
A) less than one. B) greater than one. C) one. D) greater than the absolute value of the slope of the demand curve.
Labor resources include:
a. skilled workers but not unskilled workers. b. unskilled workers but not skilled workers. c. a robot. d. education and training of workers. e. coffee breaks.
When OPEC's manipulation of oil supplies in 2000 doubled the price of energy, according to the AS/AD model, the
a. aggregate supply curve shifted to the right b. aggregate supply curve shifted to the left c. the aggregate demand curve shifted to the right d. aggregate demand curve shifted to the left e. price level in the economy fell
Which of the following is illegal under the Clayton Act of 1914?
a. Price discrimination as a tool for exploiting market power. b. A person serving on the board of directors of only one company. c. Automobile dealers selling cars from different manufacturers. d. Companies such as fast-food franchisers that allow franchisees to buy inputs, uniforms, and training from a source other than the franchiser.