If price is less than the average variable cost, firms that seek ...

[faduma]

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.

[manuelcastillo]

Answer to Question 1

True

Answer to Question 2

c

[faduma]

Thanks for the timely response, appreciate it

[kishoreddi]

TYSM