When a perfectly competitive firm makes a decision to shut down, it is most likely that
A. fixed costs exceed variable costs.
B. marginal cost is above average variable cost
C. price is below the minimum of average variable cost
D. marginal cost is above average total cost
Answer: C. price is below the minimum of average variable cost
Economics
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Excessive use of monetary or fiscal policies to achieve stabilization may:
A) require the cooperation of firms and the public in order to be effective. B) backfire if the economy becomes destabilized through erratic application. C) never be necessary as long as the economy can rely on automatic stabilizers. D) be better than weaker measures that may not hit the target.
Economics
In the diagram below, label the x-axis, the y-axis, and the origin
What will be an ideal response?
Economics