If a perfectly competitive firm's total revenue is less than its total variable cost, the firm
A) should continue to produce and increase its demand.
B) should stop production by shutting down temporarily.
C) should raise its price above its average variable cost.
D) should adopt new technology in order to lower its costs of production.
B
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As the level of real GDP increases, the short-run aggregate supply curve:
a. shifts to the right. b. shifts to the left. c. becomes flatter. d. becomes steeper. e. becomes horizontal to the real GDP axis.
The marginal benefit curve is:
A. upsloping because of increasing marginal opportunity costs. B. upsloping because successive units of a specific product yield less and less extra benefit. C. downsloping because of increasing marginal opportunity costs. D. downsloping because successive units of a specific product yield less and less extra benefit.