(Consider This) An unprofitable motel will stay open in the short run if:
A. price (average nightly room rate) exceeds average variable cost.
B. marginal revenue exceeds marginal cost.
C. price (average nightly room rate) exceeds average fixed cost.
D. marginal revenue exceeds price.
Answer: A
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Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for
A) liabilities. B) liquidity. C) loans. D) leverage.
If a monopolist draws a set of cost and revenue curves to represent the firm, he would show that
a. price intersects average total cost at the average total cost curve's minimum b. price lies above the marginal revenue curve c. marginal revenue at every output level equals zero d. marginal cost at every output level equals zero e. average total cost equals marginal cost
If the government set a price ceiling at $8
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. there would be a permanent surplus, at least until the price floor was lifted.
C. the price would fall back to the equilibrium price.
D. the price floor would not have any effect on this market.
According to Okun's law, each extra percentage point of ________ unemployment is associated with a ________ widening of a negative output gap, measured in relation to potential output.
A. frictional; 0.5 percent B. cyclical; 2 percent C. frictional; 2 percent D. cyclical; 0.5 percent