Mars Inc produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
A) shut down as fixed costs are not being covered.
B) keep producing as profits are $50,000.
C) keep producing as variable costs are being met.
D) keep producing as total costs are being recovered.
C
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Anita is the retired president of Claddagh College and currently serves on the board of directors of the Patrician Pharmaceutical Company. Anita is considered ________ of the company
A) an outside director B) an inside director C) a managing director D) a silent partner
Taxes on polluting emissions are
a. more efficient than direct controls. b. used by all economic societies. c. less effective than direct regulations. d. easily enforced through the criminal justice system.
Minimum wages are examples of
A) a price floor. B) a price ceiling. C) the rationing function of prices not working. D) government increasing the demand for certain products.
Sometimes wages are set above the equilibrium level when
a. garbage collectors earn higher wages than secretaries due to compensating differentials. b. accountants earn more than dental technicians due to higher educational requirements. c. movie superstars earn more than talented plumbers. d. unions negotiate higher wages by threatening to strike.