In the short run, a monopolist will shut down when
a. average total cost is greater than price at all output levels
b. average variable cost is greater than average fixed cost at all output levels
c. price is greater than average variable cost at all output levels
d. average fixed cost is greater than price at all output levels
e. average variable cost is greater than price at all output levels
E
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Economic efficiency necessarily occurs when the firm
A) produces a given output at least cost. B) produces a given output by using the least inputs. C) earns a normal profit. D) earns an economic profit.
To help offset the costs from loan defaults, the First National Bank of Gotham decides to increase the interest rate it charges on its business loans
As a result of this increase in the interest rate, the creditworthiness of Gotham's loan applicants is likely to A) improve. B) deteriorate. C) be unchanged. D) be unchanged, unless the economy enters a recession at the same time as the interest rate is increased.