Where it wants to produce, the firm in Figure 13.3 would be:
A. making a zero economic profit.
B. losing money.
C. making a positive economic profit.
D. breaking even.
Answer: C
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Marginal utility theory predicts that as the price of coffee rises, the ________ a substitute for coffee ________ and the ________ coffee ________
A) supply of; increases; demand for; decreases B) supply of; decreases; supply of; increases C) demand for; increases; quantity demanded of; decreases D) demand for; decreases; demand for; increases
Traditionally, Wall Street investment banks had been organized as ________, but by 2000 they had converted to being ________
A) sole proprietorships; partnerships B) partnerships; sole proprietorships C) corporations; partnerships D) partnerships; publicly-traded companies
To reduce economic volatility the Fed should push the economy toward a
A) positive output ratio. B) negative output ratio. C) zero output ratio. D) All of the above are consistent with reduced volatility.
If a nation has the lowest opportunity cost of producing a good, that nation has a(n) ________ in the production of that good.
A. absolute advantage and possibly a comparative advantage B. absolute advantage C. comparative advantage and an absolute advantage D. comparative advantage