At a firm’s profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm
A. has a profit of $25 per unit of output.
B. should shut down if its short-run average fixed cost is less than $25.
C. has a loss of $100 per unit of output.
D. should shut down if its short-run average variable cost exceeds $25.
Answer: B
You might also like to view...
Complete the following logical statement: "Because of, individuals and societies must make choices, and they must therefore consider the opportunity cost of every action."
All the costs of a transaction are referred to as
A) transfer costs. B) transactions costs. C) marketing expenditures. D) accounting costs.
Vertical and horizontal equity are widely accepted and applying them to evaluate a tax system is always straightforward
a. True b. False Indicate whether the statement is true or false
Mika borrows $100,000 to start up her own beauty shop. She pays 5 percent interest on her loan. In order to account for all costs of her business, Mika must not forget:
A. the explicit cost of $5,000. B. the implicit cost of $5,000. C. the explicit cost of $105,000. D. the implicit cost of $100,000.