The owner of a perfectly competitive firm that is earning economic losses in the short run
A) should alter the rate of output in order to increase profitability.
B) should cut his own salary in order to reach the break-even point.
C) is actually losing more than he thinks because not all of the implicit costs have been considered.
D) is earning less than he would if he worked for someone else.
Answer: D
You might also like to view...
______________ is the amount of production provided per unit of a factor of production.
Fill in the blank(s) with the appropriate word(s).
The Exchange Rate Mechanism (ERM) was:
A) an attempt to bring all countries under a fixed exchange rate system. B) a fixed exchange rate system in Europe, with the Deutsche Mark as the anchor currency. C) a fixed exchange rate system in Europe, with the British pound as the anchor currency D) a fixed exchange rate system in use in the 1960s.
The average product of labor is equal to
A. change in total product divided by quantity of labor. B. change in total product divided by change in quantity of labor. C. total product divided by quantity of labor. D. total product divided by change in quantity of labor.
Congress created the Federal Reserve System in 1913 as the institution delegated to administer
A) monetary policy to stabilize the economy. B) the constitutional power of Congress to "coin money and regulate the value thereof." C) collect taxes for the federal government. D) the minting of coins.