For a government to be efficient, a project should be funded up to
A. MB = 0.
B. MB = ~
C. MC = 0.
D. MC = ? .
E. MB = MC.
E. MB = MC.
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The table above shows the situation in the gasoline market in Tulsa, Oklahoma. If the price of a gallon of gasoline is $3.65, then
A) there is a surplus of gasoline in Tulsa. B) there is a shortage of gasoline in Tulsa. C) the gasoline market in Tulsa is in equilibrium. D) Without more information we cannot determine if there is a surplus, a shortage, or an equilibrium in the gasoline market in Tulsa. E) There is neither a surplus nor a shortage, but the market is NOT in equilibrium.
If a firm shuts down in the short run, then its:
A. economic loss will equal its variable costs. B. total revenue and total cost will fall to zero. C. economic loss will equal its fixed costs. D. profit will equal zero.