If a firm is earning a normal profit, but zero economic profit, at the point where MR = MC, the firm should
a. shut down
b. increase output and decrease price
c. increase output and increase price
d. decrease output and increase price
e. remain at its current level of output
E
You might also like to view...
The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 55 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 55 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1575.
Net worth and assets are the same
Indicate whether the statement is true or false
Coldest Ice produces ice packs for use in lunch boxes. All of the following could be accidents for Coldest Ice except which one?
A) the ice packs failing to meet safe food temperatures B) the ice packs infringe on another firm's patent C) a successful audit D) the ice packs leak
Jordan has the following assets and liabilities:Two cars$10,000House$200,000Mortgage$100,000Cash$1,000Car loans$3,000Checking account balance$2,000Credit card balance$1,000 What is the value of Jordan's assets?
A. $317,000 B. $213,000 C. $109,000 D. $203,000