Clooney Brothers Inc sells wheat in a perfectly competitive market where the market price is $5.28 per bushel. It produces 250 bushels of wheat per month and has an average total cost of production of $3.50 . Which of the following is true in this scenario?
a. The firm will break even
b. The firm will earn a profit of $445.
c. The firm will suffer a loss of $600 and decide to shut down.
d. The firm will suffer a loss of $200 and decide to stay open.
b
You might also like to view...
Refer to Figure 4-1. If the market price is $1.50, what is the consumer surplus on the second burrito?
A) $0.50 B) $1.00 C) $1.50 D) $3.50
Rwanda is a clear example of a country that has:
A. achieved economic growth only after a democratic regime was in place. B. achieved economic growth without a democratic regime. C. failed to achieve economic growth without a democratic regime. D. failed to achieve economic growth, despite having a democratic regime.
An externality is defined as
a. the revenue generated by a firm in the external market b. a byproduct of a good or activity that affects someone not immediately involved in the transaction c. an additional cost of consumption that is borne by a third party d. a cost or benefit arising from price changes e. the value of a good or service to a consumer
Measuring unemployment is the job of the Bureau of Labor Statistics
a. True b. False Indicate whether the statement is true or false