Refer to Figure 12-4. If the market price is $30, should the firm represented in the diagram continue to stay in business?
A) No, it should shut down because it cannot cover its variable cost.
B) Yes, because it is making a profit.
C) No, it should shut down because it is making a loss.
D) Yes, because it is covering part of its fixed cost.
D
You might also like to view...
A private good is
A) a good that is rival and excludable. B) a good that is rival and nonexcludable. C) a good that is nonrival and excludable. D) a good that is nonrival and nonexcludable.
Which of the following would not be considered a real variable in determining a real business cycle?
a. A change in technology b. A labor strike c. An increase in the money supply d. A change in tastes e. A substantial weather event
A shift outward in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.
Answer the following statement true (T) or false (F)
Compared to the elasticity of demand for off-peak trains, one would expect elasticity of demand for peak-time trains to be:
A. greater. B. the same. C. unrelated. D. less.