A firm will not shut down in the long run as long as the firm's revenue:
A. is larger than the firm's variable cost.
B. is greater than the firm's marginal cost.
C. is greater than the fixed cost.
D. is less than the total cost.
Answer: A
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Grant has $200 to spend each month on restaurant meals and jazz performances at his
neighborhood jazz club. The price of a typical restaurant meal is $20 and the price of a jazz performance ticket is $10. Grant is maximizing his utility by consuming 6 restaurant meals and attending 8 jazz performances. Suppose Grant still has $200 to spend, but the price of restaurant meal rises to $25, while the price of jazz performance ticket drops to $8. Can it be determined if Grant is better off or worse off than he was before the price change? Use a budget constraint/indifference curve graph to illustrate your answer.
An increase in a country's net commodity terms of trade will
A) not always guarantee positive changes in the country's economy. B) always increase the country's economic welfare. C) always increase the country's real income. D) never increase the country's quantity of exports. E) always increase the country's production of its import competing good.
Total surplus equals:
a. consumer surplus + producer surplus ? deadweight loss. b. consumer surplus ? producer surplus ? deadweight loss. c. consumer surplus ? producer surplus + deadweight loss. d. consumer surplus + producer surplus.
Which of the following is an example of a positive incentive? a. You expect to be grounded if your grades slip below a B average
b. You expect to receive a scholarship if your grades remain high. c. Desserts will be unavailable at the cafeteria if you arrive after 7:00 p.m. d. Campus police institute a policy of impounding cars parked in delivery zone spaces.