Answer to Question #181964 in Macroeconomics for James

Question

QUESTION 13

Remaining open requires:

1. The firm to satisfy all of its customers.
2. The firm to break the law.
3. The price to exceed the firm’s average variable cost.
4. The price to exceed the firm’s average fixed cost.
5. The price to exceed the firm’s average total cost.

QUESTION 14

If price falls below the price at the shutdown point:

1. The firm will shut down immediately.
2. The firm will begin producing a larger quantity.
3. The firm will decrease its output slightly.
4. The firm will simply begin charging customers a higher price.
5. There is no hope left for the world.

QUESTION 15

Many of the reasons that supply curves shift:

1. Cannot be determined.
2. Are too complex to specifically express.
3. Relate to underlying changes in costs.
4. Relate to underlying changes in demand.
5. Are caused by decreases in demand for the firm’s product.

Answer 1

13.- 5

14.-1

15.-2