If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then
A. it should produce where MR = MC.
B. it should produce zero output.
C. total revenue is greater than total costs.
D. total revenue is less than total variable costs.
Answer: A
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A market tends to be monopolistic if
a. The good has too many substitutes b. The good has very few substitutes c. There are too many rivals d. The good has too few complements
When the Fed buys government bonds on the open market, the money supply expands
Indicate whether the statement is true or false
In the globalized AS/AD model, what curve indicates the amount of tradable goods that other countries will supply to a country at a given price level and exchange rate?
A. World demand curve B. Domestic supply curve C. Domestic demand curve D. World supply curve
If June can earn $1,500 in revenue from painting two houses, how much can she earn in revenue from painting three houses? (Assume she is just one housepainter in a large market of housepainters, and that she can easily find a third customer.)
A. More than $2,250. B. Exactly $2,250. C. Exactly $4,500. D. Less than $2,250.