The neighborhood ice cream shop finds that when it charges $3 per ice cream cone, its total revenues are $90,000 . It has total variable costs of $30,000 and total fixed costs of $40,000 . From this we can infer the
a. shop should be moved because the rent is too high
b. price is less than average total cost
c. economic profits are $20,000
d. shop will be closed in the long run
e. shop sells 10,000 ice cream cones
C
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Fashion trends are a nonprice determinant for demand because
A) they cause a movement along the demand curve. B) they influence people's tastes and preferences in clothing. C) they change the supply of accessories. D) they do not affect demand.
The Social Security Trust Fund
a. will provide a stream of future revenue for the federal government. b. is a "pot" of money set aside for the payment of future benefits. c. is a net asset of the U.S. Treasury worth approximately $2 trillion. d. is of zero asset value to the federal government.
To fully understand how taxes affect economic well-being, we must compare the
a. consumer surplus to the producer surplus. b. price paid by buyers to the price received by sellers. c. reduced welfare of buyers and sellers to the revenue raised by the government. d. consumer surplus to the deadweight loss.
Most of the poverty in this country can be traced to
A. the recession that began in 1990. B. the heritage of slavery. C. five decades of social and economic change. D. the War on Poverty.