Considering production decisions for only the short run, a firm producing where MC = MR should stop producing if
a. its losses are less than TFC
b. its losses equal TFC
c. its losses are greater than TFC
d. TR is less than TC
e. TR exceeds TVC
C
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A market is initially in a long-run equilibrium and there is a permanent increase in demand. After the new long-run equilibrium is reached, there
A) are more firms in the market. B) are fewer firms in the market. C) are the same number of firms in the market. D) probably is a different number of firms in the market, but more information is needed to determine if the number of firms rises, falls, or perhaps does not change. E) is no change in the market.
Use the table below to answer the next question.YearEmployedStructuralFrictionalCyclicalUnemployed20031,800501005020020042,400100100 30020052,000 15018050020062,66040 0140Determine the number of people frictionally unemployed for the year 2006.
A. 100 B. 200 C. -100 D. 0