The graph above shows the average and marginal cost curves for the Banner Textile Company. The company produces corduroy fabric, which it sells in a perfectly competitive market. The current market equilibrium price for corduroy is $50 a yard. Assuming the firm maximizes profit,
a. it will earn zero economic profit in the short run.
b. it will shut down immediately.
c. it will produce 12 yards of fabric per day.
d. it will produce 7 yards of fabric per day.
e. it will produce 10 yards of fabric per day.
e. it will produce 10 yards of fabric per day.
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The decline of the poverty rate for the elderly can be attributed to
a. Temporary Assistance for Need Families (TANF) b. tax increases c. Medicaid d. the political power of the elderly e. increased resource earnings
The demand for foreign currency is derived from the demand for that country's goods and services
a. True b. False Indicate whether the statement is true or false
Compared to the GDP deflator, the consumer price index measures:
A) the price of all the goods and services produced in the economy.
B) the price of a fixed market basket of goods and services.
C) the price of exported goods and services.
D) the price of wholesale goods and services.
Though Nash games are noncooperative, a cooperative outcome is more likely if
A. firms can easily monitor the outcomes from a rival's defection. B. firms expect the market relationship to last only for a short time. C. the long-run gains are smaller than the short-run gains. D. firms expect the market relationship to last a long time.