Many gift shops along the ocean shut down during the winter because
a. revenues cannot cover fixed costs
b. marginal revenue does not equal marginal cost
c. costs are minimized by shutting down
d. revenues are maximized by shutting down
e. revenues cannot cover variable costs
E
Economics
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Saving and investment that increase a nation's capital lead to
A) slower growth because there is a lack of consumption. B) a decrease in labor productivity as capital is used to replace labor. C) a decrease in the amount of capital per worker. D) an increase in labor productivity.
Economics
The assumption that labor markets clear makes it very easy for the classical model to explain recessions
a. True b. False
Economics