In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
In what way(s) do the development paths chosen by Pakistan and Bangladesh differ? What are the main factors that have contributed to these differing paths?
What will be an ideal response?
Four friends decide to meet at a Chinese restaurant for dinner. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. A Tragedy of the Commons problem is likely for each of the following reasons except
a. each person has an incentive to eat as fast as possible since their individual rate of consumption will not affect their individual cost. b. there is an externality associated with eating the food on the table. c. when one person eats, he may not take into account how his choice affects his friends. d. each dish would be both excludable and rival in consumption.
By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves
A) short-changes B) prohibits C) discourages D) encourages
In the figure above, the curve going through point A represents
A) an upward-sloping demand curve. B) the line of equality. C) the wage curve. D) the Lorenz curve.