18. Mr. Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market price for pizza is $95. Mr. Ma should A. exit the market in both the short-run and long-run. B. continue his business in both the short-run and long-run. continue his business in the short-run but exit in the long-run if the situation continues. shut down his business in the short-run but continue in the long-run if the situation C. D. continues. Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs 19. I. II. A. I only II only C. Both I and II B. Neither I nor II D. 20. Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. I. II. Both firms aim to maximize profit and produce at P = MC. I only П only Both I and II A. B. C. Neither I nor II D. In general when unemployment falls we can expect 9. inflation to rise A. inflation to fall B. C. inflation to remain constant no relationship between unemployment and inflation D. A bicycle manufacturer expects the price of bicycle to rise in the near future, the supplier 3. will increase the supply of bicycle now decrease the supply of bicycle now decrease the quantity supplied of bicycle now increase the quantity supplied of bicycle now A. B. C. D.

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 5SCQ: Explain in words why a profit-maximizing film will not choose to produce at a quantity where...