Homework Clinic
Social Science Clinic => Economics => Topic started by: Capo on Jun 29, 2018
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If a firm's total variable cost exceeds its total revenue, the firm should stop production by shutting down temporarily.
Indicate whether the statement is true or false
Question 2
Financial contributions to the campaigns of members of Congress, state legislators, and other elected officials by firms that seek special interest legislation that make the firms better off are
A) illegal.
B) the result of the voting paradox.
C) irrational because elected officials will almost always act in the interest of the voters who have to pay the cost of the legislation.
D) examples of rent seeking.
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Answer to Question 1
TRUE
Answer to Question 2
D