Refer to the above diagram. All data are for the short run. If product price is P2, the firm will:
A. produce Q5 units and break even.
B. produce Q2 units and make an economic profit.
C. close down to avoid a loss.
D. produce Q2 units and suffer a loss.
Answer: D
Economics
You might also like to view...
What is autarky?
What will be an ideal response?
Economics
The unregulated monopoly in the figure below will earn profit of: 
A. $16. B. $0. C. $4. D. $8.
Economics
Aggregate demand decreases and real output falls but the price level remains the same. Which factor would most likely contribute to downward price inflexibility?
A. Menu costs. B. Lower interest rates. C. An increase in aggregate supply. D. The real-balances effect.
Economics
Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.
Answer the following statement true (T) or false (F)
Economics