A perfectly competitive firm is selling 300 units of output at $4 each. At this output level, total fixed cost is $100 and total variable cost is $500. The firm
A) is maximizing its profit.
B) is earning a profit, but not necessarily the maximum profit.
C) is experiencing an economic loss.
D) should shut down.
B
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Empirical evidence strongly supports the view that unemployment insurance ________
A) decreases unemployment B) has little effect on employment C) increases unemployment D) has little effect on unemployment
The income transferred by the government from a citizen who is earning income to another citizen is referred to as:
a. fiscal spending. b. transfer payment. c. budgetary allowance. d. taxation. e. internal debt.
The price elasticity of demand measures
A) the responsiveness of quantity demanded to a change in price. B) the responsiveness of price to a change in competition. C) the change in quantity demanded due to a change consumer income. D) the change in price due to a change in demand.
Inflation in the U.S. economy tends to be:
A. a finite, one-time event resulting from a shock. B. ongoing, as increases in aggregate demand generally exceed the increases in aggregate supply. C. a finite, one-time event as the Fed actively works to eliminate all inflation. D. ongoing, as aggregate supply is continually shifting to the left.