单项选择题

Suppose a price-taker firm produces baseball bats that sell at a price of $100 each. This firm’s average total cost at the current level of production is $150 per bat, and the average fixed cost is $40 per bat. Which of the following statements is TRUE regarding this firm They should:

A. shut down in the short run because their average total cost is greater than their price.
B. continue producing baseball bats because they are covering their fixed costs.
C. shut down in the short run because their average variable cost is greater than their price.

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单项选择题Which of the following is least accurate regarding product development and marketing for firms under monopolistic competition

A. Firms that bring new and innovative products to the market face relatively more elastic demand curves than their competitors.
B. Relative to other types of competition, product innovation is critical to the pursuit of economic profits.
C. Advertising is necessary to communicate the uniqueness of the firm’s products relative to its competitors.

单项选择题Which of the following statements concerning aggregate demand is most accurate

A. When price levels rise, real wealth increases, and individuals will spend more.
B. When price levels rise, real wealth decreases, and individuals will spend less.
C. When price levels fall, real wealth increases, and individuals will spend less.