When would it make sense for a factory that is losing money to remain in operation?
(A) If the revenue from the goods being manufactured exceeds the operating cost.
(B) If marginal revenue is equal to marginal cost.
(C) If total cost of the goods being manufactured exceeds the operating cost.
(D) If marginal product of labor becomes negative.
Ans: (A) If the revenue from the goods being manufactured exceeds the operating cost.
You might also like to view...
Refer to Scenario 18.1. When Curly made the loans to Moe, Larry, and Shemp, there were 500 coins' worth of receipts, so in total, the receipts were ________ backed by gold
A) 20% B) 40% C) 50% D) 100%
Refer to Scenario 10.2. What level of output maximizes total revenue?
A) 0 B) 90 C) 95 D) 100 E) none of the above
Refer to the above figure. Profits will equal zero
A. when the price equals $2. B. when the price equals $4. C. when the price equals $1. D. at prices between $1 and $2.
U.S. citizens and firms earn foreign exchange when they sell products to citizens and firms in other countries.
Answer the following statement true (T) or false (F)