The bottom line is that the firm produces rather than shuts down if there is some rate of output where the price at least covers average fixed cost
Indicate whether the statement is true or false
false
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In the 19th century hospitals had notorious reputations—questionable places to visit, risky places to stay. What advances changed all this?
a. Development of the germ theory of disease. b. Advances in medical technology. c. Availability of health insurance to pay the bills. d. All of the above.
If an economy can produce a maximum of 10 units of good X and the opportunity cost of 1X is always 2Y, then what is the maximum units of good Y the economy can produce?
A) 5 B) 200 C) 20 D) 500 E) none of the above
A negative externality is a situation in which
A. a firm is paying in excess of the total costs of producing a good. B. a cost associated with an economic activity is borne by a third party. C. there is a spillover of benefits. D. None of these.
Refer to the graph below. If the output level increases from Q2 to Q3, then the:
A. Marginal cost of the product becomes closer to its marginal benefit
B. Marginal cost of the product increases while its marginal benefit decreases
C. Marginal cost of the product decreases while its marginal benefit increases
D. Marginal cost of the product stays constant while its marginal benefit increases