Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is 12, the firm
A) incurs an economic loss, but will not shut down.
B) will not shut down in the short run, but will leave the industry in the long run.
C) will shut down.
D) is breaking even.
Ques. 2A single-price monopolist will produce at the point where
A) MR = 0.
B) MR = P.
C) MR = MC.
D) P = MC.
Ques. 3An advantage of the corporate form of organization is that
A) owners have joint unlimited liability.
B) owners have limited liability.
C) owners have individual unlimited liability.
D) creditors have unlimited liability.
Ques. 4Brian consumes only pizza and soda. When the price of a soda is 2 and the price of a slice of pizza is 4, Brian maximizes his utility by buying 5 sodas and 10 slices of pizza.
If the marginal utility of the 5th soda is 100, then the marginal utility from the 10th slice of pizza must be ________. A) 200
B) 100
C) 50
D) More information is needed to determine the marginal utility of the 10th slice of pizza.
Ques. 5Sharmila has a budget line for DVDs and books. DVDs are on the vertical axis and books on the horizontal. Her budget line becomes steeper as
A) the price of a DVD falls.
B) the price of a DVD rises.
C) her income decreases.
D) her income increases.
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