Marginal cost indicates how much total cost increases if one more unit is produced or how much total cost drops if production declines by one unit

a. True
b. False


A

Economics

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In the short run, a perfectly competitive firm will shut down if

A) it incurs any economic loss. B) price equals average cost. C) total revenue is less than total variable cost. D) total revenue is less than total fixed cost.

Economics

Purchasing power parity means equal rates of return

Indicate whether the statement is true or false

Economics

When free mobility of factors of production is added to a common market, the result is a customs union.

a. true b. false

Economics

The explanation for the law of demand involves:

A. consumers' ability to substitute different goods. B. the government's ability to set prices. C. suppliers' ability to substitute inputs. D. the market's ability to equate supply and demand.

Economics