A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A. price is above minimum ATC
B. price is equal to minimum ATC
C. price is above minimum AVC
D. price is below minimum AVC
Answer: C
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If real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate?
A) $0.2 trillion B) 1.5 percent C) 15.0 percent D) 2.1 percent E) -1.5 percent
Government failure means that government action reduces market efficiency
Indicate whether the statement is true or false
One reason given for more central bankers releasing its decisions publicly is:
A. for monetary policy to work, people must be taken by surprise. B. monetary policy is more effective when households and businesses can understand and anticipate it. C. so that central banks across the world can coordinate their policies. D. most people do not understand monetary policy so it really doesn't do any harm to release the decisions publicly.
If antitrust legislation is successful, then the monopolistic firm will
A. increase output and charge a higher price than before. B. decrease output and charge a higher price than before. C. decrease output and charge a lower price than before. D. increase output and charge a lower price than before.