If a monopolistically competitive firm's optimal level of output occurs where P < AVC, it will shut down.
Answer the following statement true (T) or false (F)
True
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________ economies include ________
A) Advanced; France, Australia and South Korea B) Advanced; the U.S., Taiwan and Russia C) Advanced; Russia, Canada and Singapore D) Emerging; Taiwan, Russia and Singapore E) Emerging; Saudi Arabia, Poland and Taiwan
Marginal benefit curves slope ________ and marginal cost curves slope ________
A) upward; upward B) upward; downward C) downward; downward D) downward; upward
When the budget deficit is the main cause of the trade deficit, governments should take steps to
a. reduce their budget deficits to prevent making their economy vulnerable to a rapid outflow of international financial capital that could bring a deep recession. b. increase their budget deficits to prevent making their economy vulnerable to a rapid outflow of international financial capital that could bring a deep recession. c. reduce their budget deficits to prevent making their economy vulnerable to a rapid inflow of international financial capital that could bring a deep recession. d. increase their budget deficits to prevent making their economy vulnerable to a rapid inflow of international financial capital that could bring a deep recession.
A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if
a. adults buy more popcorn than children. b. the cost of showing a movie to children is less than the cost of showing a movie to adults. c. it has some degree of monopoly-pricing power. d. All of the above are correct.