At the shutdown point, the firm Question list K . . . O Question 1 O A. incurs an economic loss equal to total variable cost O B. incurs a loss equal to total fixed cost O Question 2 O C. makes zero economic profit O D. stops production to decrease its economic loss O Question 3 O Question 4 O Question 5Grain prices go the way of the oil price Question list K Rising crop prices have started to impact the price of breakfast for millions of Americans-cereal prices are rising. Source: The Economist, July 21, 2007 How does the rising price of grain affect the average total cost and marginal cost of producing breakfast cereals? Question 1 . . . O Question 2 The rising price of grain the average total cost and the marginal cost of producing breakfast cereals. O A. decreases; increases O B. increases; increases O Question 3 O C. decreases; decreases O D. increases; does not change O Question 4 O E. increases; decreases O Question 5 O Question 6 O Question 7U.S. Steel Lays Off 756 Question list K With a drop in the demand for steel pipe and tube, U.S. Steel Corporation will idle plants in Ohio and Texas and lay off 756 workers. Source: The Wall Street Journal, January 6, 2015 Question 1 As U.S. Steel responded to the fall in demand, how did its marginal cost change? What can you say about minimum AVC in the plants that closed? . . . O Question 2 As U.S. Steel responded to the fall in demand, its marginal cost O Question 3 The minimum average variable cost in the plants that closed must have been O A. increased; less than the market price O B. decreased; equal to average fixed cost O Question 4 O C. decreased; less than the market price O D. decreased; greater than the market price Question 5 O E. increased; greater than the market price O Question 6 O Question 7