In the short run, the firm should shut down when:
A. price is equal to the average total cost of production.
B. price is less than the minimum of the average variable cost of production.
C. price is equal to the minimum of the marginal cost of production.
D. price is equal to the minimum of the average total cost of production.
Answer: B
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New Texas stadium was built with so that the team could sell "standing room only" tickets. People who buy these tickets can watch the game on televisions located around the facility or on catwalks that surround the stadium. Policing those fans (making sure they do not stand in the way of people who have seats) is costly. In that case, the MC curve would be
A. upward sloping. B. a backward L. C. downward sloping. D. a forward L.
Which of the following is an accurate statement about markets?
a. It doesn’t matter what they look like, but rather what they do. b. There is a limited variety of them, and they all do about the same thing. c. They facilitate trade for large companies, but tend to ignore small ones. d. They focus more on the exchange of goods than the exchange of services.
The multiplier effect makes the aggregate demand curve:
A. steeper. B. horizontal. C. vertical. D. flatter.
A trade deficit refers to a situation where:
A. Government spending (including transfer payments) exceeds tax revenues B. A nation's purchases from other nations are less than its sales to other nations C. Assets are less than liabilities D. Exports are less than imports