A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as
A. the loss is smaller than its total variable costs.
B. the loss is smaller than its marginal costs.
C. price exceeds marginal costs.
D. the loss is smaller than its total fixed costs.
Answer: D
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The Human Development Index was proposed because
A) people confuse nominal GDP and real GDP. B) nominal GDP and real GDP are subjective measures. C) of the limitations of real GDP as a measure comparing the standard of living in different nations. D) the GDP deflator changes if the base year is changed. E) different nations have different populations.
If resource owners anticipated a monetary growth rate of 6 percent, but the money supply actually grew at only 2 percent, then: a. real wages would fall
b. output would decrease. c. output would increase. d. output would increase, but only if nominal wages were increased more rapidly than prices. e. the expected inflation rate was less than the actual rate.
__________ sees the entrepreneur as an exploiter of labor.
A. Joseph Schumpeter B. Frank Knight C. Henry George D. Karl Marx
Refer to the data provided in Table 17.4 below to answer the following question(s). The table shows the relationship between income and utility for Celeste.Table 17.4 IncomeTotal Utility $0 0 $40,00050 $80,00090$120,000120$160,000140Refer to Table 17.4. Suppose Celeste has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Celeste does not become disabled, she will earn her usual salary of $120,000. Celeste has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. Such an insurance policy would be worth ________ to Celeste.
A. $0 B. $40,000 or less C. more than $40,000 but less than $80,000 D. $80,000 or more