In the above figure, at a price of $4 per unit, a profit-maximizing perfectly competitive firm will
A) shut down because its total revenue is less than its variable costs.
B) incur an economic loss.
C) produce 5 units.
D) Both answers A and B are correct.
D
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Recall from Chapter 5: Other things constant, when households lower their time preferences, and demonstrate a willingness to postpone some present consumption for future consumption,
A) their savings increase. B) their savings decrease. C) the budget deficit increases. D) the budget deficit decreases.
If e = 0.125, c = 0.08, and D = 720, the total demand for high-powered money is
A) 32.4. B) 3512.20. C) 572.4. D) 147.6.
Some individuals or families can become completely saturated with a service such as television. This suggests that
a. wants are limited b. desires for a single commodity can be satisfied but then the focus will switch to other goods and services c. a highly productive economy may someday be able to satisfy all human desires d. resources are not truly fixed in supply as we generally assume e. scarcity does not exist
One of the reasons for the growth performance of free market economies is firms' use of innovation to compete with one another
a. True b. False Indicate whether the statement is true or false