The exiting of firms from a perfectly competitive industry occurs when
A) opportunity costs cannot be covered.
B) P = ATC.
C) accounting profit is less than economic profit.
D) MR equals MC.
Answer: A
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Unintended births do not seem to be greater at lower income levels
Indicate whether the statement is true or false
A cigar factory employs 20 workers and produces 1,000 cigars a day. The company reduces the workforce to 19 workers and produces 912 cigars a day. The 20th worker:
A. had a marginal product of 88 cigars. B. must have had a lower marginal product than the 19th worker. C. caused average product to fall. D. All of these are true.
A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
A) Her marginal value of an additional bite of food has fallen to zero. B) Her marginal value of additional food has fallen below $4 ($12 divided by 3 servings). C) Her marginal value of brunch has fallen below $12. D) The total value she places on brunch today exactly equals $12.
_____ income has been adjusted for changes in prices over time
Fill in the blank(s) with the appropriate word(s).