Changes

:Nope, though your statement about the long run is correct.  The firm is still stuck with his fixed costs even if he shuts down (makes output go to zero).  It would be like the bus ride to DC if the trip were canceled the morning of the trip.  The bus company would still want to be paid for setting aside the bus and driver for a day.  (Minus 2).

:Nope, though your statement about the long run is correct.  The firm is still stuck with his fixed costs even if he shuts down (makes output go to zero).  It would be like the bus ride to DC if the trip were canceled the morning of the trip.  The bus company would still want to be paid for setting aside the bus and driver for a day.  (Minus 2).

:The correct answer is "(b) output increases, AFC decreases."  That's because AFC equals FC divided by Q.  As Q increases, AFC must decrease (FC is constant).

:The correct answer is "(b) as output increases, AFC decreases."  That's because AFC equals FC divided by Q.  As Q increases, AFC must decrease (FC is constant).

2. Some politicians complain about how people are losing their jobs to workers in China. Is this problem the result of "free trade" or "protectionism"?  

2. Some politicians complain about how people are losing their jobs to workers in China. Is this problem the result of "free trade" or "protectionism"?  

:78/80.  Well done on the last homework.  Congratulations on your terrific homework throughout the course!

:78/80.  Well done on the last homework.  Congratulations on your terrific homework throughout the course!