Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.
A. earn a profit; earn a loss
B. shut down; reopen for business
C. not shut down; exit the industry
D. earn a loss; earn a profit
Answer: C
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One determinant of the natural rate of unemployment is the
a. rate of growth of the money supply. b. minimum wage rate. c. expected inflation rate. d. All of the above are correct.
When country X imports goods from country Y,
A. only country X benefits. B. only country Y benefits. C. both country X and country Y benefit. D. neither country X nor country Y benefit.
Individuals economize and respond predictably to Select one:
a. positive incentives but not negative incentives b. negative incentives but not positive incentives c. both positive and negative incentives d. neither positive or negative incentives
Monopolistic competition is an industry in which products are differentiated, but in oligopolies products are standardized.
Answer the following statement true (T) or false (F)