Refer to the above figure. In order to stay open in the short run, this firm must
A. earn a positive profit.
B. recover its fixed cost.
C. receive a price exactly equal to its average total cost.
D. receive a price equal to or greater than the minimum of its average variable cost.
Answer: D
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The table above gives the purchases of an average consumer in a small economy. (These consumers purchase only loaves of bread and jugs of soda.) Suppose 2010 is the reference base period
a. What quantities are in the CPI market basket? b. What is the cost of the CPI market basket using 2010 prices? c. What is the cost of the CPI market basket using 2011 prices? d. What is the CPI in 2011?
According to the economics of exhaustible resources, if the interest rate increases,
A) an exhaustible resource will be used up sooner. B) an exhaustible resource will be used up over a longer period of time. C) the period of time until an exhaustible resource is used up will not change. D) none of the above
Classical economists reject the laissez-faire theory that the economy would self correct to full employment without government interference
a. True b. False Indicate whether the statement is true or false
If monetary and fiscal policy are going to promote economic stability, they must _________ during a recession, and _________ during an economic boom. (Fill in the blank)
a. add stimulus; apply restraint b. apply restraint; add stimulus c. add stimulus; add stimulus d. apply restraint; apply restraint