If the price of a product falls below average total cost in the short run, the firm
a. has an economic profit
b. cannot cover total fixed costs
c. experiences a loss
d. must always shut down
e. should expand output until MC = MR
C
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If Mexico has foreign assets worth $100 billion and no liabilities, a 15% depreciation of the peso will result in a(n):
A) increase in liabilities at home by 100 billion pesos. B) decrease in assets at home by 150 billion pesos. C) decrease in overall wealth by 15%. D) increase in overall wealth.
If the government attempts to control pollution with a command-and-control policy:
A. the government will command each firm to produce no more than a certain level of pollution. B. the government will control the firm's entire production process. C. the government will force the firm to use particular pollution-control technologies. D. All of these