Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.
Figure 15.6Refer to Figure 15.6. If Trollio's T-shirts is producing 50 silk-screened T-shirts and selling each T-shirt at $16, then in the long run this firm should
A. continue to produce 50 silk-screened T-shirts and sell each T-shirt for $16.
B. exit the industry, as it is earning a zero economic profit.
C. reduce output to try to increase profits.
D. increase output to 60 silk-screened T-shirts.
Answer: A
You might also like to view...
If a natural monopoly is regulated using the marginal cost pricing rule, how will that affect prices, outputs, profits, and the distribution of surpluses? What are the pros and cons to this method of regulation?
What will be an ideal response?
Pieces of property that serve as a store of value are called
A) assets. B) units of account. C) liabilities. D) borrowings.
Which of the following technological developments gave rise to labor unions in the United States?
a. transfer of plants and animals during the Columbian exchange b. invention of methods for large-scale crop production and storage c. advances in machine automation and manufacturing processes d. rapid increase in computer information systems after World War II
Behavioral economics deals with
A) the assumption that people are always selfish. B) bounded rationality. C) unbounded willpower. D) only theories without justification from empirical evidence.