In the short run, a firm should shut down when
A. MR = ATC.
B. MR > MC.
C. P < AVC.
D. P > MC.
Answer: C
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The largest single source of federal government revenue is the: a. payroll tax
b. personal income tax. c. corporate income tax. d. excise tax.
Refer to the diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The trading possibilities curves suggest that the terms of trade are:
A. 1.5 beers for 1 pizza.
B. 1 beer for 2 pizzas.
C. 2 beers for 1 pizza.
D. 1 beer for 1.5 pizzas.
Cash distributions made by government to individuals when no good or service is received in exchange are known as __________.
a. poverty payments b. taxes c. transfer payments
Figure 7-7
In Figure 7-7 at 100 units, AFC equals
A. 10. B. 100. C. 180. D. 1,000.