A company finds that at its present level of production, MC = AVC at $15, MC = ATC at $20, and MC = MR at $17. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $2 per unit.
B) to continue production, as it is earning an economic profit of $3 per unit.
C) to shut down.
D) to continue production at a loss.
D
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If a country removes a tariff on imported shoes, we expect the domestic price of shoes to _______ and the quantity of shoes consumed in the domestic market to ________ .
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Describe three types of gains from trades?
A) trades of exchange rates for goods or services, trades of goods or services for property, and trades of gold for textiles B) trades of goods or services for goods or services, trades of goods or services for assets, and trades of assets for assets C) trades of imports for exports, trades of exports for imports, and trades of natural resources for financial assets D) trades of services for goods, trades of currency for services, and trades of one type of currency for another E) trades of current goods for future services, trades of currency for gold, and trades of one type of currency for another