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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text: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.
Transcribed Image Text: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.
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