If a firm is maximizing its profit and producing less than the output at which its average total cost is minimized, then that firm
A) must be suffering an economic loss.
B) must be earning an economic profit.
C) has excess capacity.
D) is producing at its capacity output.
E) must be earning a normal profit.
C
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An advantage monetary policy has over fiscal policy is that monetary policy
A) can be quickly changed and implemented. B) is coordinated with fiscal policy. C) is approved by the president of the United States. D) affects consumption expenditure and investment without impacting international trade. E) has no multiplier effects.
Evidence in support of the efficient markets hypothesis includes
A) the failure of technical analysis to outperform the market. B) the small-firm effect. C) the January effect. D) excessive volatility.
In an input market, the term input refers to ______.
a. land, labor, and capital b. wages, rents, and royalties c. insurance, bonds, and credit cards d. goods, services, and products
If there is employment discrimination against minorities, this will cause the:
A. supply of their services to increase, and their wages to fall. B. demand for their services to decline, and their wages to fall. C. supply of their services to decline, and their wages to rise. D. demand for their services to decline, and their wages to rise.