If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. lose money and shut down in the short run if price falls below $15.
B. lose money, but continue to operate in the short run if price is at least $15.
C. make positive profits any time the price is greater than $15.
D. All of these are true.
C. make positive profits any time the price is greater than $15.
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Product innovation is a key advantage of having an imperfectly competitive market structure
a. True b. False Indicate whether the statement is true or false
When inflation rises, people tend to go to the bank
a. more often, giving rise to menu costs. b. more often, giving rise to shoeleather costs. c. less often, giving rise to redistribution costs. d. less often, thereby lessening the severity of the inflation tax.
Holding all else constant, a country's standard of living will rise if its
A. nominal GDP grows at a faster rate than real GDP. B. nominal GDP grows at a slower rate than real GDP. C. the rate of population growth exceeds the rate of growth of real GDP. D. the rate of population growth is less than the rate of growth of real GDP.
The economy was at point A producing 100X and 200Y. It then moves to point B where it produces 200X and 300Y. It follows that
What will be an ideal response?