Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12, the firm
A) incurs an economic loss, but will not shut down.
B) will not shut down in the short run, but will leave the industry in the long run.
C) will shut down.
D) is breaking even.
C
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Which of the following is unique to oligopoly among all the market structures?
a. product differentiation b. profit maximization c. mutual interdependence d. advertising e. long-run economic profits
Which of the following is true of an annually balanced federal budget? a. Most economists agree that the federal government should balance its budget just as each household does. b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s. d. Such a policy guarantees that the economy is its potential level. e. Such a policy could worsen a contractionary gap.
According to the shortsightedness effect, politicians tend to favor projects with:
a. short-run benefits and short-run costs. b. short-run benefits and long-run costs. c. long-run benefits and short-run costs. d. long-run benefits and long-run costs.
Why would candy companies in the United States dislike the U.S. trade barriers on imported sugar?
a. Barriers decrease the cost of production, making candy less expensive. b. Barriers decrease the cost of production, making candy more expensive. c. Barriers increase the cost of production, making candy more expensive. d. Barriers increase the cost of production, making candy less expensive.