The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8, in the short run the firm will
A) make zero economic profit.
B) make an economic profit.
C) incur an economic loss.
D) None of the above answers is correct because more information is needed to determine the firm's economic profit or loss.
C
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Twenty-four years before CUSTA, another agreement between the same countries covered trade in
A) textiles. B) steel. C) autos. D) agriculture. E) telecommunications.
As John's income has increased, he has purchased fewer hamburgers. Hamburgers are
A) a normal good for John. B) an inferior good for John. C) not following the law of demand. D) leading to a rightward shift in John's demand curve for hamburgers.
In the 1980s, both the U.S. government budget and U.S. trade deficits increased
a. True b. False Indicate whether the statement is true or false
The MFC curve increases for a monopsonist because:
A. as more workers are hired, all workers receive higher wages. B. output price rises as a firm's market power increases. C. hiring more workers does not affect wages. D. the later workers hired are less productive.