Author Question: The shutdown decision can be restated in terms of producer surplus by saying that a firm should ... (Read 59 times)

Haya94 · **on:** Jul 1, 2018

The shutdown decision can be restated in terms of producer surplus by saying that a firm should produce in the short run as long as

A) revenue exceeds producer surplus.
B) producer surplus is positive.
C) producer surplus exceeds fixed cost.
D) producer surplus exceeds variable cost.
E) profit and producer surplus are equal.

Question 2

With increasing returns to scale, isoquants for unit increases in output become

A) farther and farther apart.
B) closer and closer together.
C) the same distance apart.
D) none of these.