A firm will shut down in the short run if
A. it is suffering a loss.
B. total costs exceed revenues.
C. fixed costs exceed revenues.
D. variable costs exceed revenues.
Answer: D
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will be the equilibrium outcome of this game?
A. Both Apricot and Macrosoft will develop a touch-screen t-shirt. B. Macrosoft will develop a touch-screen t-shirt, and Apricot will not. C. Apricot will develop a touch-screen t-shirt, and Macrosoft will not. D. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt.
Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero. C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
The colonial region with the smallest deficit with the United Kingdom between 1768–1772 was
(a) New England (b) the Middle Colonies (c) the Southern Colonies (d) the New England and Middle Colonies
What economic conditions are relevant in managerial decision making?
What will be an ideal response?