A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $1 per unit.
B) to continue production, as it is earning an economic profit of $6 per unit.
C) to shut down.
D) to continue production at a loss.
C
You might also like to view...
Included in the official U.S. money supply are
a. U.S. government bonds. b. corporate stocks. c. check able deposits. d. All of these.
If the potential money multiplier in the U.S. is 5, then a $1,000 increase in demand deposits -- your earnings as a tutor in economics -- can potentially create demand deposits (including your $1,000 . of
a. $200 b. $500 c. $2,000 d. $5,000 e. $50,000
Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land. B. There is a very strong current in economic thought that denies the landlord's claim to rent. C. "The land shall not be sold forever" is a biblical admonition with which some people still agree. D. None of the statements is false.
Which region's agricultural system developed very differently from that of the rest of the nation?
A. the West B. the Midwest C. New England D. the South