Consider a firm that produces 500,00 . units per year. The firm's fixed costs are $100,000 . marginal costs are $250 and the price per unit is $400 . In the short-run, how low can price go before it is profitable to shut down?

a. $150
b. $250
c. $250.20
d. $400


b

Economics

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A) constant returns to scale. B) identical products being produced by all firms. C) the availability of information. D) free entry and exit.

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Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?

A) 0.35 B) 0.55 C) 2.57 D) 2.85

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A leftward shift of a supply curve is called a(n)

a. increase in supply. b. decrease in supply. c. decrease in quantity supplied. d. increase in quantity supplied.

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A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax

a. decreases consumer surplus by $645 per day. b. decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day. c. decreases total surplus from $3,000 to $1,800 per day. d. creates a deadweight loss of $15 per day.

Economics