Answer the following questions true (T) or false (F)
1. In the short run, a firm that incurs losses might choose to produce rather than shut down if the amount of its revenue is less than its fixed cost.
2. If a firm shuts down in the short run, it avoids its variable cost but not its fixed cost.
3. If a firm shuts down in the short run, its maximum loss equals the amount of its fixed cost.
1. FALSE
2. TRUE
3. TRUE
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A. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a leftward shift in the demand curve for labor?
b. Everything else remaining unchanged, if there is no wage rigidity in the market, how will equilibrium employment and wage rate change if there is a rightward shift in the supply curve of labor?
Explain why opportunity cost is the best forgone alternative and provide examples of some opportunity costs that you have faced today
What will be an ideal response?
Barter can best be defined as:
a. the direct exchange of one good for money. b. the direct exchange of money for a good. c. the direct exchange of goods and services without the use of money. d. the direct exchange of labor services for wages. e. the payment of interest on a savings account.
According to the World View titled "Jeffrey Sachs: Big Money, Big Plans," how did Columbia University economics professor Jeffrey Sachs expect extreme poverty to be eliminated by 2025?
A. Rich nations must quadruple their foreign aid flows now, and poor nations need to be more accepting of help. B. Rich nations must double their foreign aid flows now and develop full-scale, comprehensive plans for the poor countries to reduce poverty. C. Rich nations must double their foreign aid flows now and then double them again in 10 years, while poor nations must develop full-scale, comprehensive plans for poverty reduction. D. Poor nations must develop full-scale, comprehensive plans for poverty reduction without the help of rich nations.