If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run:

a. it should produce where MR = MC.
b. it should produce zero output.
c. it should go out of business.
d. total revenue is less than total variable costs.
e. total revenue is greater than total costs.


a

Economics

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You lend $5,000 to a friend for one year at a nominal interest rate of 10%. The CPI over that year rises from 180 to 190. What is the real rate of interest you will earn?

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Explain whether you would expect the elasticity of supply to be highly elastic or inelastic for fresh cut flowers and why

What will be an ideal response?

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A monopolist can choose a price & quantity combination that is above the demand schedule

a. True. b. False.

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