A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the short run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week
b. Shut-down as price is lower than average cost
c. Continue operating as the firm is covering all the variable costs and some of the fixed costs
d. Shut-down because it is cost effective to pay off the remaining fixed costs
c
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In the United States, the primary standards established for identified criteria pollutants
a. are known as the NESHAP b. are applicable only to mobile sources c. are intended to protect public welfare d. are motivated solely by expected benefits with no consideration for economic feasibility
If the demand for a product is price inelastic,
a. producers' revenues will increase if supply increases b. producers' revenues will increase if supply decreases c. a small change in price will cause a large shift in the demand curve d. a large change in price will cause a small shift in the demand curve e. a small change in price will cause a small shift in the demand curve
A supply curve illustrates a(n) ____ relationship between ____ and ____
a. direct; price; supply b. direct; price; quantity demanded c. direct; price; quantity supplied d. inverse; price; quantity demanded
The economy reaches full employment when the unemployment rate equals zero
a. True b. False Indicate whether the statement is true or false