If a firm is losing money, in the short run it
A. will definitely operate.
B. will definitely shut down.
C. may operate if covering variable costs.
D. will definitely go out of business.
C. may operate if covering variable costs.
You might also like to view...
In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the
A) buyers and sellers equally share the incidence of the tax. B) shaded area is the deadweight loss from the tax. C) shaded area is the tax revenue from the tax. D) Both answers A and B are correct. E) Both answers A and C are correct.
The marginal product of labor equals the change in ________ from a one-unit increase in the quantity of labor
A) total product B) average product C) total cost D) the slope of the average product curve E) the wage rate
Which of the following indicates when Stage I ends and Stage II begins in the short-run production?
A) when AP = 0 B) when MP = 0 C) when MP = AP D) when MP starts to diminish
Monopolies and oligopolies both erect barriers to entry through the use of
A) price cutting. B) patents. C) franchising. D) advertising.