A monopolistic firm will shut down if
A) P < ATC for every level of output.
B) P > ATC for every level of output.
C) P > AVC for every level of output.
D) P < AVC for every level of output.
D
Economics
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Suppose a firm's stock valuation is worth three times its outstanding debt. The firm's stock earns an annual return of 6 percent and pays 8 percent on the outstanding debt. What is the firm's company cost of capital?
A) 4.5 percent B) 6 percent C) 6.5 percent D) 8 percent
Economics
The aggregate-demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product. b. is vertical in the long run. c. shows an inverse relation between the price level and the quantity of all goods and services demanded. d. All of the above are correct.
Economics