The short-run break-even price
A) is the price at which the firm's current liabilities are paid off.
B) is the price at which a firm's total revenues equal total costs.
C) occurs at the output at which the firm yields a below normal rate of return.
D) occurs at the output at which the firm yields a positive economic profit.
B
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A worker with a backward-bending labor supply curve responds to an increase in wages by working more hours
a. True b. False Indicate whether the statement is true or false
Table 21.4Output (Units per Day)Total Cost (Dollars per Day)016130242358478At 2 units of output in Table 21.4, the average variable cost is
A. $12. B. $6. C. $21. D. $13.
The ways to address agency costs include all EXCEPT
a. advertising for employee positions in as many outlets as possible b. requiring employees to punch time clocks c. spot checks of the quality of employee work d. replacing closed offices with cubical office spaces
If the government breaks up a constant-cost, nondiscriminating monopoly into a perfectly competitive industry, what would we expect with regard to output and price?
a. Output and price will decrease. b. Output will increase and price will decrease. c. Output and price will increase. d. Output will decrease and price will increase. e. No change.