In the above figure, if the price is P1 and the firm produces Q2, it is
A) making an economic profit.
B) incurring an economic loss.
C) breaking even.
D) More information is needed to determine if the firm is earning a positive economic profit, zero economic profit, or is incurring an economic loss.
A
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A critical assumption made by all economic models is that
a. few economic decision makers face constraints under capitalism b. few economic decision makers face constraints under communism c. every economic decision maker, except the extremely wealthy, faces constraints d. every economic decision maker, except the federal government, faces constraints e. every economic decision maker faces constraints under every economic system
Which of the following U.S. Treasury securities represents ownership of the national debt?
a. Bonds owned by private individuals. b. Bonds owned by the Social Security Administration. c. All of the answers are correct. d. Bonds owned by the banks and insurance companies.
Risk pooling:
A. gathers individuals with similar risks and pools them together. B. reallocates the costs of catastrophes when they occur. C. reallocates the likelihood of catastrophes happening. D. diversifies the risk of catastrophes occurring.
A long-run expansion in capacity
A. Moves the economy to a point closer to its existing production possibilities curve. B. Shifts the production possibilities curve rightward. C. Moves the economy upward to the left along its existing production possibilities curve. D. Shifts the production possibilities curve leftward.