Comment on the following statement: "If a firm shuts down in the short run, it will earn zero economic profit."
What will be an ideal response?
The statement is false. In the short run, the firm has fixed costs to pay. If it shuts down, its total revenue will be equal to $0 . Therefore, the firm will suffer a loss equal to its fixed costs.
Economics
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An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets
Indicate whether the statement is true or false
Economics
An effective craft union acts as a monopoly
A. demander of labor. B. seller of labor. C. demander of capital. D. seller of capital.
Economics