A firm should continue to operate even at a loss in the short run if:
A. Its output is above the break-even point
B. Its revenues are less than its fixed costs
C. It can cover its variable costs and some of its fixed costs
D. It has some fixed costs that cannot be brought down to zero
C. It can cover its variable costs and some of its fixed costs
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Trade barriers are politically popular because
A) they are a way to avoid trade wars and still protect domestic producers. B) people recognize their use as a negotiating tool in international relations. C) their benefits are widespread, while their costs are highly concentrated. D) their benefits are concentrated, while their costs are widespread.
Which of the following situations is most likely to result in a producer monopoly?
a. A product for which quantity is low and demand is lower b. A product for which quantity is high and demand is low c. A product for which quantity is low and demand is high d. A product for which quantity is high and demand is higher
If a country has a high level of growth in income, it:
A. must have a high level of income. B. must be rapidly increasing its GDP per capita. C. must have an equitable distribution of wealth. D. All of these are true.