Winona's Fudge Shoppe is maximizing profits by producing 1,000 pounds of fudge per day. If Winona's fixed costs unexpectedly increase and the market price remains constant, then the short run profit-maximizing level of output
a. is less than 1,000 pounds.
b. is still 1,000 pounds.
c. is more than 1,000 pounds.
d. becomes zero.
b
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In new growth theory, growth in real GDP per person occurs because
i. human capital grows indefinitely. ii. technology advances as a result of choices individuals make. iii. profit incentives encourage technological change. A) i only B) ii only C) iii only D) both i and iii E) i, ii, and iii
In computing GDP, new home construction adds to
a. consumption. b. investment. c. government spending. d. net exports.
A cross-price elasticity value that is negative will always indicate goods that are substitutes.
a. true b. false
If a country that fixes its exchange rate increases its money supply, then its currency will become ________ and it will ________ reserves.
A. undervalued; gain B. overvalued; gain C. overvalued; lose D. undervalued; lose