Suppose that at the current level of output, price = $12, MC = $4, AVC = $7, and ATC = $11. Which of the following is TRUE?
A) The firm should decrease output.
B) The firm should shut down.
C) The firm should increase output.
D) The firm should maintain the current level of output.
Answer: C
You might also like to view...
You are a baker. You paid $150K in wages, $50K for dough, $20K for power, $5K in interest for a business loan, $25K in taxes, and made a profit of $10K. How much did you contribution to GDP using the product approach?
A) $80K B) $85K C) $190K D) $260K
Which of the following is not a function of money?
a. Standard of deferred payment. b. Medium of exchange. c. Legal tender. d. Store of value. e. All of the above are functions of money.
In the market for loanable funds an increase in the government budget deficit will
A. decrease the market rate of interest. B. increase the market rate of interest. C. increase the supply of loanable funds. D. have no effect over the market rate of interest.
National sovereignty means that no one person or group is in charge of the international economy.
Answer the following statement true (T) or false (F)