A competitive firm's shutdown price is equal to the minimum value of the firm's
a. marginal cost.
b. average cost.
c. average variable cost.
d. fixed and sunk costs.
c. average variable cost.
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Ordinarily the Fed lends money only to banks, but during the Great Recession of 2007-2009 the Fed extended its lender-of-last-resort role to other financial institutions. These institutions included
A) securities dealers. B) investment banks. C) high-quality corporations. D) all of the above
Preferences can be described as
A) what a person likes and dislikes. B) the income opportunities of several activities. C) feasible consumption combinations. D) the relative prices of goods and services.
When the demand curve for an input is a derived demand this means that
A) the demand curve is derived from the demand for the final product being produced. B) the demand curve depends upon the MFC. C) the law of diminishing marginal product does not hold. D) the demand curve slopes upward.
In what ways is government involved with the creation of barriers to entry?
What will be an ideal response?