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Can a firm losing money go out of business in the short Show more Brief Essays (4-5 Sentence Explanations) 1. Can a firm losing money go out of business in the short run? If it cant explain why not. 2. On what basis does a firm decide whether or not to shut down? On what basis does it decide whether or not to go out of business? 3. If the perfect competitor is losing money in the short run what happens in the market to drive up prices? 4. Are very large firms economically justifiable? What are the pros and cons of bigness? 5. Are all monopolies large firms? Provide an example of a monopoly that is a small firm. 6. How do the relative elasticitys of demand and supply affect the relative tax burdens of the buyer and the seller? 7. What are the major determinants of the elasticity of demand? Provide an example of each. 8. Explain the law of diminishing marginal utility and give an example to illustrate it. 9. Explain why the monopolistic competitor breaks even in the long run. 10. What are the ways in which a firm can differentiate its product from its of its competitors. Show less
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