A firm earning economic losses should operate in the short run as long as
A) the price per unit sold is greater than the average fixed cost per unit produced.
B) the price per unit sold is greater than the average variable cost per unit produced.
C) marginal revenue is at least the price per unit sold.
D) the price per unit sold is equal to or greater than the marginal cost of production.
B
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Which of the following is a clear difference between the market system and government?
A) Collective welfare controls government policy; the market system serves the welfare of individuals. B) Competition regulates the market system, but competition does not constrain the actions of government officials. C) The market system serves the interests of some; government serves the interests of all. D) Each of the above statements expresses the difference between the two. E) None of the above expresses the difference between the two.
Refer to the above figure. A recession is best described as
A) the upward linear line. B) the period between Point B and Point C. C) the period between Point A and Point B. D) none of the above.
The interest rate banks charge each other to borrow excess reserves is called the:
A. federal funds rate. B. discount rate. C. prime rate. D. required reserve ratio.
A federal budget deficit occurs when _____
Fill in the blank(s) with the appropriate word(s).