Which of the following is true?
A. In the short run, a monopoly will shut down if P < AVC.
B. A monopolist produces on the inelastic portion of its demand.
C. A monopolist always earns an economic profit.
D. The more inelastic the demand, the closer marginal revenue is to price.
Answer: A
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A situation is efficient if it is:
A. not possible to find a transaction that will make at least one person better off without harming others. B. possible to find a transaction that will make everyone better off. C. possible to find a transaction that will make at least one person better off, even if others are made worse off. D. possible to find a transaction that will make at least one person better off without harming others.
According to this Application, the longer than usual harmattan has impacted the supply curve for cocoa pods, shifting the supply curve to the ________ due to a(n) ________ in cocoa yields
A) right; decrease B) left; decrease C) right; increase D) left; increase
A firm that can borrow from a bank any amount it wishes up to a certain limit, and at any time up to a certain date, is said to have a
A) repurchase agreement. B) trade credit. C) a line of credit. D) internal financing.
What is meant by the term "economic efficiency"?
What will be an ideal response?