A perfectly competitive firm is operating where its total revenue equals its total cost. In the short run, if market demand increases, this firm will have an economic
a. loss and reduce output
b. loss while expanding output
c. profit and reduce output
d. profit while expanding output
e. profit, but will not change output
D
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Which is the best example of idiosyncratic risk?
A) a financial crisis B) a lawsuit because the corporation produced a faulty product C) a recession D) rising interest rates
Which of the following is consumed jointly?
A. A can of Coke. B. A doughnut. C. A missile shield. D. A seat on an airplane.
The following graph is the production possibilities curve of a nation:
Refer to the above graph. The marginal opportunity cost of the fourth unit of bread is:
A. 0 unit of drill presses
B. 1 unit of drill presses
C. 3 units of drill presses
D. 4 units of drill presses
Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. If the price-taking firm is currently producing 6 units, it should _____ to maximize profit in the short run
a. ?decrease production below 6 units b. ?increase production to 12 units c. ?increase production to 8 units d. ?keep producing 6 units e. ?increase production to 14 units