Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output.
B) decrease output.
C) continue to produce its current output.
D) shut down.
C
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Refer to the figure above. When the demand curve for gas is D2 and the supply curve of gas is S, the equilibrium quantity is:
A) 50 gallons. B) 70 gallons. C) 20 gallons. D) 40 gallons.
A merger between the Ford Motor Company and General Motors would be an example of a
A) conglomerate merger. B) vertical merger. C) horizontal merger. D) trust.
“Protection” is designed to help
A. firms whose relative inefficiency does not permit successful competition with imports. B. workers who have very high productivity, and cannot survive against low-paid foreign workers. C. government that needs revenue from tariffs and quotas to cover government spending. D. firms that are highly efficient and cannot survive against low-price foreign imports.
A tax for which the average tax rate rises with income is defined as a
a. regressive tax. b. proportional tax. c. neutral tax. d. progressive tax.