Figure 9-6 shows the marginal cost and average total cost curves for a perfectly competitive firm. This firm will
a.
earn an economic profit
b.
suffer an economic loss in this long-run situation
c.
suffer an economic loss in the short run and close
d.
break even if it expands to 180 units of output
e.
suffer an economic loss and continue producing in the short run
e
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An increase in the labor force participation rate
A) means there are more discouraged workers. B) implies that the unemployment rate must fall. C) implies that the unemployment rate must rise. D) is consistent with either a rise or a fall in the unemployment rate.
Comment on the following statement: "A firm with market power is able to charge any price it likes."
What will be an ideal response?
The ________ bowed inward the Lorenz curve is, the ________ inequality exists.
A. less; more B. more; more C. more; less D. None of these is true.
If rapid increases in oil prices caused price levels to increase and real GDP to decrease in the short run, the economy would experience
A) stagflation. B) long-run economic decline. C) hyperinflation. D) an increase in the natural rate of unemployment.