Figure 10-4
?

Figure 10-4 shows the industry’s supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is

A. going to shut down.
B. incurring losses.
C. earning zero economic profits.
D. earning economic profit greater than zero.


Answer: A

Economics

You might also like to view...

The rules of accounting generally require that ________ be included in a firm's financial records

A) only explicit costs B) both explicit costs and implicit costs C) only implicit costs D) neither explicit costs nor implicit costs

Economics

The United States has the largest percentage of foreigners in its overall population of any nation

Indicate whether the statement is true or false

Economics

What type of loan led the wave of bank lending in the 1970s and 1980s?

A) consumer loan B) commercial mortgage C) loans to state and local governments D) commercial paper

Economics

By 1900, what did the National Banking System under the Bank Act of 1863 (and subsequent amendments) help national banks attain?

(a) A majority of banking establishments (b) A majority of banking assets (c) A monopoly issue of paper money (d) All of the above

Economics