If a perfectly competitive firm's average total cost curve is below its demand schedule at any level of output, then the firm will earn ________ profits.
A. negative
B. positive
C. break-even
D. zero
Answer: B
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670Using the regular percentage change formula, what is the price elasticity of demand when price increases from $6 to $7?
A. Elastic B. Unelastic C. Inelastic D. Unit elastic
If a union is unable to increase the demand for its workers, then success at raising the wage rate paid its members means that
A) all union members receive a higher wage. B) some union members will lose their jobs. C) more union members will be hired. D) the union will push for a decrease in the minimum wage.
Refer to Table 20-6. Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for 1997 was equal to
A) 1.2 percent. B) 2.0 percent. C) 2.5 percent. D) 4.0 percent.
Define the following terms and explain their importance to the study of macroeconomics:
a. structural budget deficit b. monetize the deficit c. crowding out d. inflation accounting e. mix of fiscal and monetary policy