If the market price in a competitive market is below the minimum of average variable cost, the firm will shut down
Indicate whether the statement is true or false
True . At this price, total fixed costs are smaller than the operating loss. It pays for the firm to shut down.
Economics
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In the figure above, the marginal utility of the third crate of tomatoes for the person with total utility curve C is
A) 13 units of utility. B) 16 units of utility. C) 32 units of utility. D) 45 units of utility.
Economics
The low interest rate policies of the Federal Reserve during 2002-2004,
a. indicated that monetary policy was highly restrictive. b. increased the demand for housing, placing upward pressure on housing prices. c. made home mortgages less attractive, weakening the demand for housing. d. was on target with the federal funds rate proscribed by the Taylor rule.
Economics