Mrs. Smith operates a business in a competitive market. The current market price is $8.50 . At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25 . Mrs. Smith should
a. shut down her business in the short run but continue to operate in the long run.
b. continue to operate in the short run but shut down in the long run.
c. continue to operate in both the short run and long run.
d. shut down in both the short run and long run.
c
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What will be the result in a growing economy if increases in aggregate demand outpace rightward shifts of the long-run aggregate supply curve?
A) secular deflation B) inflation accompanied by declines in real GDP C) inflation accompanied by increases in real GDP D) a decline in consumption spending
In order to minimize losses in the short run, a perfectly competitive firm should shut down if
A. total revenue is less than total cost. B. total revenue is less than the difference between total fixed cost and total variable cost. C. total revenue is less than total variable cost. D. total revenue is less than total fixed cost.
A shift of the demand curve for thin-crust pizza would not be caused by a change in:
What will be an ideal response?
Some sources of air pollution may tend to cause global cooling
Indicate whether the statement is true or false