A perfectly competitive firm will be operating at its shutdown point if it operates
A. at the minimum point on its marginal cost curve.
B. at the minimum point on its average variable cost curve.
C. at the minimum point on its average total cost curve.
D. where P = MC.
Answer: B
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A game's outcome is a Nash equilibrium when
a. any attempt to improve one player's payoff will lower the other player's payoff. b. neither player wants to change his strategy, given the strategy chosen by the other player. c. the total payoff to the players is as large as possible. d. the first player has selected his strategy taking the second player's optimal response into account.
The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
Why do you suppose that South-South trade does not conform in volume, but does conform in pattern with expectations generated by the Heckscher-Ohlin model?
What will be an ideal response?
Which of the following would be the most likely result if high-speed rail service were introduced to an area and made commuting from that area easier?
A. The cost of living far from one's workplace would rise, and the value of land would increase. B. The cost of living far from one's workplace would rise, and the value of land would decrease. C. The cost of living far from one's workplace would drop, and the value of land would increase. D. The cost of living far from one's workplace would drop, and the value of land would decrease.