According to the shutdown rule, a firm should produce no output in the short run if
A) price is below minimum average total cost.
B) price is above minimum average total cost.
C) total revenues are lower than total fixed costs.
D) price is below minimum average variable costs.
D
Economics
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One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits. B) producer gains are relatively concentrated. C) there is no real cost to the economy. D) producer gains outweigh consumer losses.
Economics
In an economic model of consumer behavior, rational self-interest would likely be
a. a key variable b. the hypothesis of the model c. a behavioral assumption d. a prediction of the model e. a method of testing the model
Economics