In the short run, the firm should shut down when:
A. price is equal to the average total cost of production.
B. price is less than the minimum of the average variable cost of production.
C. price is equal to the minimum of the marginal cost of production.
D. price is equal to the minimum of the average total cost of production.
Answer: B
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Five players are given $10 each and asked to contribute any portion of it to a group account. They are also told that the total collection will be doubled and distributed equally among each of them
In this case, the players are likely to contribute ________. A) $5 each B) $10 each C) $1 each D) nothing
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. If the government imposes a $2 per-unit tax on this product, consumer surplus will fall from:
A. 80 to 45. B. 160 to 80. C. 90 to 45. D. 160 to 90.