If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm
A) should produce in the short run.
B) is making short-run profits.
C) should shut down in the short run.
D) has covered its fixed cost.
Answer: C
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If the Treasury borrows from the public and makes an expenditure of an equal amount, it will affect
A) the supply of currency. B) the money supply. C) the supply of government securities. D) bank reserves.
In a game, a dominated strategy is one where:
a. It is always the best strategy b. It is always the worst strategy c. It is the strategy that is the best among the group of worst possible strategies. d. Is sometimes the best and sometimes the worst strategy
If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource
a. True b. False Indicate whether the statement is true or false
If GDP is revised downward as a result of the revision, the debt-to-GDP ratio will _________; on the other hand, if GDP is revised upward or there is no change, then the ratio will _________.
Fill in the blank(s) with the appropriate word(s).