Rational expectations are based on the past alone, while adaptive expectations are based on the past, the present, and the future

A firm will shut down in the short run if revenue is not sufficient to cover its variable costs of production

a. True b. False Indicate whether the statement is true or false

Under a monopoly, resources are misallocated such that

A) too few resources are used in other industries, and too many are used by the monopoly. B) too few resources are used by the monopoly, and too many are used elsewhere. C) resources are being used as efficiently as possible only by the monopoly. D) consumers are being forced to pay a price below the MC of the monopolist.