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.

Economics

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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

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Refer to the above figure. Profits will equal zero

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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)

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