If the price is $12 per pizza, the perfectly competitive firm in the above figure is
A) making an economic profit.
B) making zero economic profit.
C) incurring an economic loss.
D) More information about the firm's total cost is needed to determine if the firm has a positive economic profit, zero economic profit, or an economic loss.
B
You might also like to view...
In the figure above, the curve is known as the
A) production possibilities frontier. B) substitution options frontier. C) production function. D) opportunity cost curve.
All of the following new construction projects are examples of fixed investment spending except
A) a dental office. B) a manufacturing factory. C) a public library. D) a shopping center.
How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?
A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes. B) Consumers will always pay 100 percent of an excise tax. C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive. D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.
Which of the following statements is true?
a. A political business cycle is one created by the incentive for politicians to manipulate the economy to get re-elected. b. Adaptive expectations theory argues that the best indicator of the future is recent information. c. Incomes policies tend to be ineffective over time. d. Incomes policies include jawboning, wage-price guidelines, and wage-price controls. e. All of these.