In the long run, a profit-maximizing firm will choose to exit a market when
a. average fixed cost is falling.
b. variable costs exceed sunk costs.
c. marginal cost exceeds marginal revenue at the current level of production.
d. total revenue is less than total cost.
d
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The figure above shows a perfectly competitive firm. The firm is operating; that is, it has not shut down. The firm produces
A) 20 units of output and makes zero economic profit. B) 20 units of output and incurs an economic loss. C) 10 units of output and makes zero economic profit. D) 10 units of output and incurs an economic loss.
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Doing messy chores before a big date
Economies of scale are also called increasing returns to scale
a. True b. False Indicate whether the statement is true or false
Normative economic statements
A. violate the ceteris paribus assumption. B. are easily testable. C. contain value judgments. D. are usually irrational.