If a competitive firm's short run average cost curve lies above the price of the product, we can conclude that the firm
a. is earning a huge profit.
b. is incurring losses.
c. is earning zero economic profits.
d. is earning a normal profit.
b
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What did Milton Friedman and E.S. Phelps argue with respect to the Phillips Curve?
A) The inverse relationship between unemployment and inflation only holds in the long run. In the short run, unemployment and inflation are positively related. B) The inflation rate will consistently be 2 percentage points below the unemployment rate. C) Economic participants would soon understand activist policymakers' strategy and revise their expectations, making discretionary efforts to fine-tune the economy ineffective. D) The Phillips Curve could accurately guide activist policy makers over the long run.
An inferior good is a good for which demand
A) decreases when income increases. B) increases when income increases. C) decreases when population increases. D) increases when population increases.
Which of the following acts limited the power of unions?
A. The Norris-LaGuardia Act B. The Wagner Act C. The National Industrial Recovery Act D. The Taft-Hartley Act
Which of the following is an in-kind transfer payment?
A. Medicaid. B. Social Security. C. unemployment insurance. D. Temporary Assistance to Needy Families.