Burkes Inc should stop production in the short run if the market price of its product is less than its average total cost of production
Indicate whether the statement is true or false
F
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As an economy produces more of one of the goods on a bowed out production possibilities frontier, what happens to the opportunity cost of producing the good?
A) It remains constant. B) It decreases. C) It increases. D) It might increase, decrease, or remain constant depending on how much people value the additional units of the good. E) None of these depicts what happens to opportunity cost.
Assume the market for used single-family homes is initially in equilibrium. All else constant, an increase in home foreclosures would cause equilibrium price and quantity to decrease
Indicate whether the statement is true or false
If, as a firm increases its rate of output, total cost increases as well,
a. profit cannot be maximized b. revenue cannot be maximized c. cost cannot be minimized d. marginal cost is increasing e. marginal cost is positive
What income groups are most likely to benefit from state and federal subsidies to higher education? Why?