At the point at which P=MC, suppose that a perfectly competitive firm's MC = $100, its AVC = $80 and its AC = $110. This firm should
A) shut down immediately.
B) continue operating in the short run.
C) try to take advantage of economies of scale.
D) try to increase its advertising and promotion.
B
Economics
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In one sense ________ appears surprising since it means that the bank is not ________ its portfolio of loans and thus is exposing itself to more risk
A) specialization in lending; diversifying B) specialization in lending; rationing C) credit rationing; diversifying D) screening; rationing
Economics
Neoclassical growth theory placed emphasis on two resources:
A) capital and entrepreneurship. B) natural resources and capital. C) capital and labor. D) labor and entrepreneurship. E) labor and natural resources.
Economics