A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55 . In the long run, the firm should
a. Shut-down as the firm is making a loss of $15 million per week
b. Shut-down as the firm cannot cover the variable costs
c. Shut down because the price is lower than average cost
d. None of the above
c
Economics
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An increase in the price level causes a ________ the IS curve and a ________ the aggregate demand curve
A) movement up along; movement down along B) shift to the right of; movement down along C) movement down along; movement down along D) shift to the left of; movement up along
Economics
A risk-neutral individual will make investment decisions purely based on net present value because
A) she doesn't care about utility. B) because utility is a linear function of wealth. C) she loves to take risk. D) net present value is always more than expected utility.
Economics