Author Question: If price is less than the average variable cost, firms that seek to maximize profit should shut ... (Read 38 times)

faduma · **on:** Jun 30, 2018

If price is less than the average variable cost, firms that seek to maximize profit should shut down.
a. True
b. False
Indicate whether the statement is true or false

Question 2

As extraction of a nonrenewable resource increases, the supply curve shifts up because:
a. more substitutes become available.
b. competition among the existing suppliers intensifies.
c. the marginal cost of extracting any given amount increases.
d. the resource finds alternative usage.
e. the resource becomes less productive.