A custom paper company finds that when the price of paper is $5, its total revenues are $60,000 . Its total costs are $70,000 . of which $57,000 are variable costs. From this we can infer
a. the firm sells 14,000 units of paper
b. economic profit is $10,000
c. the firm should shut down in the short run
d. total fixed costs are $3,000
e. price is greater than average variable cost
E
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What will be an ideal response?
If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?
a. Demand will increase. b. Quantity demanded will increase. c. Demand will decrease. d. Quantity demanded will decrease. e. Supply will decrease.
If quantity demanded is greater than quantity supplied, then
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