Use the figure above to answer this question. Consider a perfectly competitive firm in a short-run equilibrium. Figure ________ shows a firm in bad times because the firm makes a(n) ________
A) A; economic loss of $4 per unit if the firm decides to operate
B) A; economic loss of $4 so it must close
C) B; economic loss of $3 per unit
D) B; economic profit because the price exceeds average variable cost
E) C; normal profit and can stay open in the long run
A
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Which of the following would be considered a fixed cost to a typical firm?
a. Inventory costs b. Hourly labor costs c. Salary paid to manager d. Electricity costs
Which statement is true?
A. The recessions of 1973-1975 and 1981-1982 were both mild. B. The recessions of 1973-1975 and 1981-1982 were both severe. C. The recession of 1973-1975 was mild; the recession of 1981-1982 was severe. D. The recession of 1973-1975 was severe; the recession of 1981-1982 was mild.
If the aggregate demand curve shifts to the right, people are willing to buy more _____ at every price level.
Fill in the blank(s) with the appropriate word(s).
Between 2007 and mid-2009, the value of the U.S. dollar expressed in Chinese yuan
A. was zero because it was illegal to sell yuan. B. decreased precipitously. C. increased sharply. D. remained essentially constant.