A firm suffering short-run losses will continue to operate rather than shut down when price is less than its average variable costs.

A country's government would like to raise the price of one its most important agricultural crops, coffee beans. Which of the following government programs will result in higher prices for coffee beans?

A) An import quota on coffee beans B) An acreage limitation program which provides coffee bean farmers financial incentives to leave some of their acreage idle C) An import tariff on coffee beans D) all of the above

As a firm expands into overseas markets, information problems and the complexity of operating within many varied cultures and economies may result in

a. constant returns to scale b. diminishing marginal returns c. declining long-run marginal cost d. diseconomies of scale e. economies of scale