A perfectly competitive firm ________ at the level of output where P = ATC.
A. suffers an economic loss
B. shuts down
C. breaks even
D. earns an economic profit
Answer: C
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If a monopoly wants to sell a greater quantity of output, it must
A) lower its price. B) raise its price. C) tell consumers to buy more because it's a monopolist. D) raise its marginal cost. E) change its fixed costs.
If the government wished to shift aggregate demand to the right, it might:
A. increase government spending. B. increase income taxes. C. pressure the Fed to decrease the money supply. D. Any of these things might cause aggregate demand to shift to the right.
Most U.S. government spending is financed by
A. an expansion of the money supply. B. taxes. C. government securities. D. transfer payments. E. loans from foreign countries.
An alternative to random experiments is to rely on ________ to mimic the controlled experiment.
A. mirror experiments B. manipulated experiments C. natural experiments D. predetermined experiments