Pollution is a form of market failure called a negative externality

In the short run a perfectly competitive firm will

A) never shut down. B) shut down if P < ATC. C) shut down if P < AVC. D) shut down if P > AFC.

The J-curve illustrates which of the following?

A) the effects of depreciation on the home country's economy B) the immediate increase in current account caused by a currency depreciation C) the gradual adjustment of home prices to a currency depreciation D) the short-term effects of depreciation on the current account E) the Keynesian view of international trade dynamics