As long as TVC < TR, a firm will have a positive level of output in the short run.
Answer the following statement true (T) or false (F)
True
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For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market. Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?
What will be an ideal response?
Net exports is a positive number when a nation ________.
A. simply exports goods and services to other nations B. exports more goods and services than it imports C. exports fewer goods and services than it imports D. increases its exports of goods and services
Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition. B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition. D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
Assuming government wishes to either increase or decrease the level of aggregate demand, which of the following pairs are not consistent policy measures?
A. A tax increase and an increase in the money supply. B. A tax reduction and an increase in the money supply. C. A reduction in government expenditures and a decline in the money supply. D. A tax increase and an increase in the interest rate.