“If a firm cannot earn profits in the short run, it will shut down”. Is it a true or false statement? Give your reasons.

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“If a firm cannot earn profits in the short run, it will shut down”. Is it a true or false
statement? Give your reasons.

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In order to maximize surplus in a market, which of the following must be true? All costs and benefits to society are internalized. All goods are common resources. Quantity supplied is greater than quantity demanded. Marginal private benefit equals marginal private cost.
What factors are likely to reduce the holdings of inventory in relation to sales in the future? What factors will tend to increase the ratios and what in your judgement is the net effects?
What causes decreasing returns to a variable input in the production process?
Give an example of Third-degree price discrimination. Can third degree price discrimination be effective if different groups of consumers have different levels of demand but the same price elasticities?
As long as the principle of diminishing marginal utility is operating, any increased consumption of a good (A) lowers total utility. (B) produces negative total utility. (C) lowers marginal utility and, therefore, total utility.(D) lowers marginal utility, but may raise total utility.
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A perfectly competitive firm is in equilibrium where marginal cost is equal to marginal revenue because:
Suppose widgets have a price elasticity of demand equal to -1.95 and cross elasticity of demand equal to 2 with dundles. What are the pricing options for a firm that sells widgets? Explain