Which of the following products would be used in calculating GDP?
(A) Plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys.
(B) Cotton cloth manufactured in India and sold to clothes makers in the United States.
(C) Toys manufactured in China at a factory owned by a U.S. company.
(D) Cars manufactured in Tennessee at a factory owned by a Japanese automobile company.
Ans: (D) Cars manufactured in Tennessee at a factory owned by a Japanese automobile company.
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A perfectly competitive firm cannot practice price discrimination because
A) each consumer in a perfectly competitive market has the same willingness to pay. B) the firm can only charge the market price. C) a firm that breaks even in the long run cannot afford to engage in yield management. D) it does not advertise; this prevents the firm from marketing its product to different segments of the market.
Assume a firm is facing the following situation: At Q = 1,000, P = $10, MC = $10, ATC = $18, and AVC = $16. This firm should shut down and, in so doing, limit its losses to $2,000
Indicate whether the statement is true or false