When a firm chooses to shutdown, it is
A. making a good decision as long as the price it is getting is less than its average total costs.
B. making a good decision as long as the price it is getting is less than its average variable costs.
C. making a poor decision because it should always produce where marginal cost equals marginal revenue.
D. making a poor decision because it should always produce where average costs exceed average revenue.
Answer: B
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Many economists believe that at the current level of consumption of health care in the United States, the marginal cost of health care for society is:
A. Less than the marginal benefit B. Greater than the marginal benefit C. Equal to the marginal benefit D. Zero
Which of the following is true?
a. Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions. b. Monetarists advocate increasing the money supply by a constant rate year after year. c. Keynesians argue that the crowding-out effect is rather insignificant. d. Monetarists argue that the crowding-out effect is rather large. e. All of these.
Trade between countries is only based on absolute advantage
Indicate whether the statement is true or false
Which of the following cases is an OCA that is NOT preferred by a home country?
A) The home country faces symmetric shocks with the other country. B) The labor market is well integrated, allowing for migration. C) The home country faces asymmetric shocks with the other country. D) The home economy is well integrated with the other country, carrying out vast amounts of trade.