If a firm is experiencing an economic loss in the long run, then
a. it must be experiencing an accounting loss
b. it should stay in business if it can cover its fixed costs
c. the market must be too large
d. it should exit from the industry
e. price exceeds marginal cost
D
You might also like to view...
Mixed bundling may result in
A) less revenue compared to pure bundling. B) secondary market transactions between sellers in different markets. C) predatory pricing. D) greater revenue compared to pure bundling.
An increase in the government's budget surplus means
a. public saving is greater than $0 and increasing. b. public saving is greater than $0 and decreasing. c. public saving is less than $0 and increasing. d. public saving is less than $0 and decreasing.
Assuming diminishing returns,
a. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, rich countries should grow faster than poor ones. b. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones. c. the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, poor countries should grow faster than rich ones. d. the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, poor countries should grow faster than rich ones.
The best example of a "frictionally unemployed" worker is one who:
A. has lost their job because skills no longer match job requirements. B. is laid off during a recessionary period in the economy. C. is in the process of voluntarily switching jobs. D. reduces productivity by causing frictions in a business.