If the shut down rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?
In the short run there are fixed costs, but in the long run all costs are variable. In the long run the average variable cost is usually higher than in the short run.
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The opportunity cost of one more slice of pizza in terms of sodas is the
A) total number of sodas that we have divided by the total number of pizza slices that we have. B) price of a pizza slice minus the price of a soda. C) number of pizza slices we have to give up in order to get one extra soda. D) total number of pizza slices that we have divided by the total number of sodas that we have. E) number of sodas we have to give up in order to get one extra pizza slice.
Medicare provides health care to _____
a. the elderly b. the needy c. the widowed d. the orphaned