In the short run, the fixed costs of a firm:
A. must be paid regardless of level of output.
B. should be strongly considered in deciding whether to shut down production.
C. are zero when quantity produced is zero.
D. must be higher than variable costs for the firm.
A. must be paid regardless of level of output.
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If firms in a monopolistically competitive market are earning economic profits, which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?
A) Demand decreases and becomes less elastic. B) Demand increases and becomes less elastic. C) Demand increases and becomes more elastic. D) Demand decreases and becomes more elastic.
When two variables have been observed to have a tendency to occur at the same time, we can say there is ____________ but not necessarily ____________.
A. causation; correlation B. correlation; causation C. positivity; causation D. normality; correlation
An economic justification for government providing public goods and services is that many people can benefit regardless of whether they pay or not
a. True b. False Indicate whether the statement is true or false
Which would most likely cause a rightward shift in the demand curve for the New York Times newspaper?
a. An increase in the price of the New York Daily News b. A decrease in the size of the population in the New York area c. A decrease in the costs of printing d. An improvement in cable television in the New York area