A purely competitive firm is faced with a marginal revenue curve that lies everywhere below the average variable cost curve. Would this firm be able to operate in the short run? Explain
What will be an ideal response?
In order to operate in the short run the firm would have to enjoy at least an operating profit. In this case the firm would never have total revenue that would exceed total variable cost. Therefore, it should shut down.
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"Allocative efficiency in the production of cherries means that consumers can eat all of the cherries they desire." Is this statement true or false? Explain your answer
What will be an ideal response?
Refer to Table 20-16. Looking at the table above, real wages ________ from 2014 to 2015, and real wages ________ from 2015 to 2016
A) rose; fell B) fell; fell C) fell; rose D) rose; rose
A firm that places its assets in the custody of a board of trustees is called a:
a. trust. b. combination. c. cartel. d. all of these.
In 2005, the European Union began a program to
A) reduce greenhouse gas emissions by 10 percent within 5 years. B) eliminate greenhouse gas emissions by 50 percent within 15 years. C) subsidize firms that pollute more than a given limit. D) allow the trading of carbon-dioxide permits among firms.