If marginal cost is zero a firm can still profit through pricing
Indicate whether the statement is true or false
False
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Which of the following circumstances would cause current GDP to overstate economic well-being in comparison to 60 years ago?
A. An increase in the total output per person B. An increase in military expenditures C. An increase in welfare payments D. The trend toward a shorter work week
If the price of a good in the U.S. is $10 and the unit of foreign currency is the dinar, in which case is the real exchange rate 5/4?
a. the foreign price is 4 dinars and the exchange rate is 1/2 dinars per dollar b. the foreign price is 5 dinars and the exchange rate is 2.5 dinars per dollar c. the foreign price is 4 dinars and the exchange rate is 2 dinars per dollar d. the foreign price is 5 dinars and the exchange rate is 2/5 dinars per dollar
Output per person on a country level is another way to think about:
A. nominal GDP. B. real GDP per capita. C. GDP growth rates. D. productivity.
Refer to the data. Assuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. realize an economic profit of $10.
B. realize an economic profit of $4.
C. not earn any economic profit.
D. shut down rather than incur a loss by producing.