Refer to the scenario above. Which of the following will happen if the equilibrium price charged by the firm in the short run is $130?
A) The firm will earn positive economic profits and continue production.
B) The firm will incur a loss but continue production.
C) New firms will enter the industry in the long run.
D) All firms will incur losses in the long run.
B
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Which of the following statements is false?
A) In the case of a negative externality, the market equilibrium is inefficient. B) In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved. C) In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result. D) In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.
Any place where factors of production are bought and sold is a:
A. Private-goods market. B. Stock market. C. Product market. D. Factor market.
Given a linear curve, the value on the y-axis changes from 120 to 100 when the value on the x-axis changes from 10 to 20, then the slope of that curve is
A) -20. B) +20. C) -2. D) +2.
If an economy has a fixed exchange rate and it chooses to issue $10 million in bonds, what will happen according to the Monetary approach?
A) It will have to increase its foreign exchange reserves. B) It will have to decrease its foreign exchange reserves. C) It will have to allow its currency to appreciate. D) It will have to allow its currency to depreciate.