A firm suffering economic losses decides whether or not to produce in the short run on the basis of whether
A. revenues from operating are sufficient to cover fixed costs.
B. revenues from operating are sufficient to cover fixed plus variable costs.
C. revenues cover variable costs.
D. Firms suffering economic losses will always shut down.
Answer: C
You might also like to view...
Factors that cause an increase in the demand for credit at a given real interest rate cause:
A) the credit demand curve to shift to the left. B) an upward movement along the credit demand curve. C) a downward movement along the credit demand curve. D) the credit demand curve to shift to the right.
By providing workers with more machines, equipment and buildings to use in the production of goods, production would decrease
Indicate whether the statement is true or false
Suppose the supply curve and the demand curve both have unitary elasticity at all prices. The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be
A) $1. B) 50 cents. C) zero. D) Impossible to calculate without knowing the slope of the supply curve.
In an oligopoly, the price effect is:
A. the increase in price from lowering the quantity sold. B. the decrease in total revenue that occurs because the increase in quantity will push the market price down. C. the increase in total revenue due to the money brought in by the sale of additional units. D. the increase in output that comes from raising the price.