A firm in pure competition would shut down when:
a. price is less than average total cost
b. price is less than average fixed cost
c. price is less than marginal cost
d. price is less than average variable cost
d
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Consumer surplus is the area
A) below the demand curve and above the market price. B) below the supply curve and above the market price. C) above the demand curve and below the market price. D) above the supply curve and below the market price. E) below the demand curve and above the supply curve.
If a tariff is imposed on imports of shrimp into the United States, U.S. producers ________ and the U.S. economy will ________
A) gain; be unaffected B) gain; lose C) lose; lose D) gain; gain E) lose; gain
In which countries are incomes distributed most unequally and least unequally?
What will be an ideal response?
Economies of scope often occur because
A) a production facility can be used to produce more than one product. B) it forces firms to search for economies of scale. C) it enhances the ability to find market niches. D) managers are able to multi-task in product markets