The above figure shows a perfectly competitive firm. If the market price is $20 per unit, the firm
A) will definitely shut down to minimize its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.
B
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Labor productivity depends on the
a. quality of the labor b. the effectiveness of government c. the proportion of the labor force that is unionized d. the size of the economy e. All of the answers are correct
Cutting the poor off welfare is
A. the liberal position. B. the conservative position. C. both the liberal and the conservative position. D. neither the liberal nor the conservative position.
Exports minus imports equals net exports.
a. true b. false
A monopolistically competitive firm's marginal revenue curve:
A. is downsloping and coincides with the demand curve. B. coincides with the demand curve and is parallel to the horizontal axis. C. is downsloping and lies below the demand curve. D. does not exist because the firm is a "price maker."