In the short run, a perfectly competitive firm will always shut down if, at all positive output levels, total revenue is
a. less than total cost
b. less than total cost but greater than variable cost
c. less than total cost but greater than fixed cost
d. greater than fixed cost
e. less than variable cost
E
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The use of the coordinate system allows
a. for the display of the flows of dollars, goods and services, and factors of production in an economic system. b. for the display of how labor and other resources are organized in the production process. c. for the display of two variables on a single graph. d. for the creation of pie charts and bar graphs.
If the Federal Reserve increases the growth rate of the money supply, in the long run
a. inflation is higher and the unemployment rate is lower. b. inflation is higher while the unemployment rate is unchanged. c. inflation is unchanged while the unemployment rate is lower. d. None of the above is correct.