For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,
a. If SRMR>SRMC at capacity, then the firms should price to fill capacity
b. If SRMR
d. If LRMR>LRMC at capacity, then the firms should price to fill capacity
a
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The short-run shutdown price for a perfectly competitive firm is where price equals
A) minimum ATC. B) AR. C) MR. D) minimum AVC.
Define the following terms and explain their importance to the study of economics. a. marginal cost b. marginal revenue c. short-run equilibrium d. supply curve of the firm e. economic profit
What will be an ideal response?
In the Wintrobe model of dictatorship:
a. the dictator substitutes capital for repression b. power is created by capital and labor c. the dictator is a stationary bandit d. the dictator combines loyalty and capital e. the dictator produces power by combining repression and loyalty
Which of the following would contribute to a United States current account surplus?
A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.