If price is less than average fixed costs,
a. the firm should operate, since it is making economic profits
b. the firm should operate in the short run, but it is making economic losses.
c. the firm should shut down in the short run.
d. We do not know whether a firm should continue operating or not.
d
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Third-degree price discrimination occurs when a monopoly
a. separates its customers into distinct markets, charging a different price to each group. b. charges different prices for the same good sold to the same customer. c. requires the consumer to pay a separate fee simply for the right to purchase the good. d. charges each customer the maximum that he is willing to pay for each item purchased.
In a Keynesian model, what are the short-run effects on output, the real interest rate, and the real exchange rate, for both the domestic economy and a foreign economy, of a decline in investment?
What will be an ideal response?
On the graph above, a movement from point ________ to point ________ might represent a positive supply shock
A) F; I B) H; G C) H; F D) F; G E) none of the above
What was not one of the government's strategies to pull the nation out of the Great Depression?
a. Large subsidies for manufacturing companies. b. Sizable increases in employment of emergency workers. c. Development of the Federal Deposit Insurance Corporation (FDIC). d. Institute price controls for farmers.