If variable cost is $15 million, fixed cost is $14 million, and total revenues are $13 million, in the short run the firm will _____ and in the long run the firm will _____.
A. shut down; go out of business
B. shut down; stay in business
C. operate; go out of business
D. operate; stay in business
A. shut down; go out of business
You might also like to view...
The figure above shows the demand curve, marginal revenue curve, and marginal cost curve
The amount of consumer surplus when the market has a monopoly producer is ________ and the amount of consumer surplus when the market is perfectly competitive is ________. A) abf; ace B) abf; bcd C) ace; bcd D) ace; abf E) bcd; ace
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. At the unregulated price and quantity, Light-U-Up's economic profit is equal to
A) -$10. B) $10. C) $40. D) $60.
Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:
a. the vertical intercept up but will not shift the horizontal intercept. b. the horizontal intercept to the right but will not shift the vertical intercept. c. the horizontal intercept to the left and the vertical intercept upward. d. the vertical intercept downward and the horizontal intercept to the right. e. neither the horizontal intercept nor the vertical intercept.
The two factors that determine the size of the multiplier are the
A. unemployment rate and the inflation rate. B. marginal propensity to consume and the amount of overseas leakage. C. amount of imports and the amount of exports. D. amount of spending and the number of jobs.