Assume that at the current level of output, price equals marginal revenue, but is less than average total cost. So long as price is greater than average variable cost, the firm should continue to operate in the short run to minimize its losses

Refer to Figure 9.2. A movement from point d to point b could be caused by a(n)

A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) decrease in short-run aggregate supply.

Consider a good that you do not like at all, perhaps turnips. Given the market price for turnips, what would be your consumer surplus?

What will be an ideal response?