A perfectly competitive firm shuts down in the short-run when the market price is less than the average variable cost

The "ability-to-pay" principle of taxation is the normative idea that

A) an equitable tax system is one in which high income individuals should bear a greater burden of taxes than low income individuals. B) two individuals earning the same income should have equal ability to pay, all else constant. C) each individual should voluntarily contribute according to her ability to pay taxes. D) progressive taxes are more equitable than regressive taxes.

Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms. A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes

What are these points called? A) decision options B) decision nodes C) option points D) either-or terminals