When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. can minimize its losses by staying open.
B. is earning positive profits.
C. then a firm is covering all of its fixed costs, but not all of its variable costs.
D. then MC must be greater than MR.
Answer: A
You might also like to view...
In the current year, the CPI is 122 and during the previous year the CPI was 115. The inflation rate between these years is
A) -5.7 percent. B) -6.1 percent. C) 6.1 percent. D) 5.7 percent. E) 1.61 percent.
If the demand for a good is increasing while the supply curve remains unchanged, then we will observe
A) more purchases at a higher price. B) more purchases at a lower price. C) fewer purchases at a higher price. D) fewer purchases at a lower price.
Refer to Scenario 1 . If Ajax can borrow at an interest rate of 5%, which projects should be considered? If Ajax can borrow at an interest rate of 11%, which projects should be considered?
What is the level of total investment if the interest rate is 10%?
Which of the following statements best describes the trading characteristics of the United States and Japan?
a. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite high levels of trade by world standards. b. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite low levels of trade by world standards. c. The United States and Japan are extremely large economies that have comparatively few nearby trading partners, and quite high levels of trade by world standards. d. The United States and Japan are extremely large economies that have comparatively few nearby trading partners. Both countries actually have quite low levels of trade by world standards.