Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip
A) makes an economic profit and should stay open in the short run.
B) makes an economic profit, but should shut down in the short run.
C) incurs an economic loss, but should stay open in the short run.
D) incurs an economic loss and should shut down in the short run.
C
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If an activity has an external benefit, such as education, a tax on that activity can lead to the efficient level of output being produced
Indicate whether the statement is true or false
The main problem with a regulatory commission setting P = ATC is that the regulated firm will
a. experience a loss b. find its demand curve shifting to the left c. earn economic profits d. refuse to make new purchases of capital e. have little incentive to keep costs down
One study from the United Kingdom (cited in the textbook) showed that almost ______ times as many firms that faced global competition reported innovations in product or process compared to firms that did not face global competition
A) three B) six C) nine D) twelve
Rent, after the change in demand from D/1 to D/2, would be
A. $1,500.
B. $1,000.
C. $500.
D. impossible to determine with the information available.