If profit from producing would be negative, producers will shut down. ?
Answer the following statement true (T) or false (F)
True
Rationale: Production is undertaken to make a profit. Producers which cannot earn a profit will close.
You might also like to view...
As compared to the basic Nash-Cournot equilibrium for duopolists where the firms face the same market demand curve and have identical costs, in the situation where the firms produce products which are viewed by consumers as not being identical,
A) there will generally be different prices charged by the two firms. B) there will generally be different quantities produced by the two firms. C) one or both of the firms may practice spurious differentiation. D) All of the above.
Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after 16 years?
a. $550 b. $3,960 c. $1,100 d. $797.5 e. $1,200
What do antitrust laws enable the government to do?
a. Break up large firms into smaller ones b. Acquire a controlling percentage of large firms c. Require firms to sell off profitable operations d. Block all mergers and acquisitions by foreign firms
A leakage is
A. A decline in the capacity of the economy to produce goods. B. A decrease in aggregate supply. C. Income not spent directly on domestic output but instead diverted from the circular flow. D. An export from the economy.