In the short run, which of the following is FALSE about the shutdown point?
A) Total revenue is equal to total fixed cost.
B) Total revenue is equal to total variable cost.
C) Product price is equal to the minimum average variable cost.
D) Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.
A
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A congested side street in your neighborhood is
a. excludable and rival in consumption. b. excludable and not rival in consumption. c. not excludable and rival in consumption. d. not excludable and not rival in consumption.
In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
A) tastes and preferences. B) military capabilities. C) the size of their economies. D) relative abundance of factors of production. E) labor productivities.
Everything else held constant, when the inflation rate is expected to rise, interest rates will ________; this result has been termed the ________
A) fall; Keynes effect B) fall; Fisher effect C) rise; Keynes effect D) rise; Fisher effect
The SSS Co has a patent on a particular medication. The medication sells for $1 per daily dose and marginal cost is estimated to be a constant at 20ยข
Assuming linear demand and marginal cost curves, use this information to estimate the deadweight loss from monopoly pricing if the firm currently sells 1,000 doses per day. Can this loss be justified?