Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?
A) if his Pancake Kitchen's revenue is less than its variable costs
B) if his Pancake Kitchen's revenue is less than its fixed costs
C) if his Pancake Kitchen's revenue is less than its explicit costs
D) if his Pancake Kitchen's revenue is less than its total costs
Answer: A
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When tastes over current and future consumption are homothetic, the interest rate elasticity of savings supply is positive.
Answer the following statement true (T) or false (F)
As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
a. marginal cost curve. b. average total cost curve. c. average variable cost curve. d. market demand curve.
In 2012 a country had a real GDP $15.4 trillion and GDP deflator of 125 . If that country's GDP deflator equals 115 in 2013, what is the rate of inflation in 2013?
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a gallon of milk?
A) 1 2/3 dozen eggs B) 3/5 of a dozen eggs C) $2.50 D) $1.50