A perfectly competitive firm is earning an economic profit when total fixed costs increase. Assuming the firm does not shut down, in the short run the firm will
A) charge a higher price.
B) produce more output so the extra revenue will cover the increased costs.
C) produce less output to decrease total costs.
D) continue producing the same quantity as before but will make less economic profit.
E) continue producing the same quantity as before and continue making the same economic profit as before.
D
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A long-run aggregate supply curve may graphically be represented as a
A) vertical line. B) a downward sloping line. C) an upward sloping line. D) horizontal line.
Longitudinal data on income inequality in the United States indicates that: a. children of poor families stay poor, but children of rich families do not always stay rich
b. children of poor families often escape poverty, but rich families invariably retain their wealth over time. c. there is substantial movement among income groupings in the United States. d. the rich are getting richer and the poor are getting poorer.
The total cost of taxation to consumers and producers generally exceeds the amount of tax revenue collected by government.
Answer the following statement true (T) or false (F)
This table shows the demand and supply schedule of a good.Price of GoodQDemandQsupply$0.005025$0.504026$1.003528$1.503131$2.002835$2.502740According to the table shown, at a price of $0.50 quantity demanded:
A. exceeds quantity supplied and a shortage exists. B. is less than quantity supplied and a surplus exists. C. is less than quantity supplied and a shortage exists. D. exceeds quantity supplied and a surplus exists.