In the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels
a. less than total cost
b. less than total cost but greater than variable cost
c. less than total cost but greater than fixed cost
d. greater than fixed cost
e. less than variable cost
E
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People are forced to economize because of
A. competition. B. pressure to conform. C. scarcity. D. the absence of money.
Governments grant patents to
A) encourage low prices. B) compensate firms for research and development costs. C) encourage firms to reveal secret production techniques. D) encourage competition.
The United States became a net international debtor in 1985 for the first time since World War I
Indicate whether the statement is true or false
If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then an investor should
A) invest only in dollars. B) invest only in euros. C) be indifferent between dollars and euros. D) invest only in dollars if the exchange rate is expected to remain constant. E) invest only in euros if the exchange rate is expected to remain constant.