Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits.
B) earning $200 in total economic profits and is maximizing economic profits.
C) earning zero total economic profits and is not maximizing economic profits.
D) incurring $200 in total economic losses and is minimizing economic losses.
D
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What will be an ideal response?
Your loss from an increase in interest rates is ________, and your gain from a decrease in interest rates is ________, if you hold a two-year bond compared to holding a one-year bond
A) greater; greater B) greater; less C) less; greater D) less; less
Social Security is used to redistribute income.
A. True B. False C. Uncertain
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a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium higher than the short run price c. Entry of new firms into the market d. All of the above