Use the following graph for a perfectly competitive firm to answer the next question.
The firm is
A. generating a loss and should shut down in the short run.
B. generating a loss, but should continue to produce in the short run.
C. earning a normal profit.
D. earning an economic profit.
Answer: C
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Assume that for a particular firm's output price = $80, marginal cost = $30, average total cost = $25. This information suggests that the firm in question has:
A) no market power. B) very little market power. C) a fair degree of market power. D) absolute market power.
A specific tax imposed on a monopolist may increase the price by more than the tax
Indicate whether the statement is true or false
All games involve which of the following?
A. Rules B. Chance events C. Dice D. Cards
Bond prices are determined mainly by the demand for bonds
Indicate whether the statement is true or false