If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is:
A. making a positive economic profit.
B. making a zero economic profit.
C. suffering an economic loss.
D. None of these
Answer: A
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The above figure illustrates the market for electric power that is served by the one utility in Alberta, Canada
a. If the government did not regulate this utility, what would be the price of a kilowatt hour in this region and how much power would be generated? b. If the government regulates the utility and chooses an average cost pricing rule, what would be the price of a kilowatt hour and how much power would be generated? c. If the government regulates the utility and chooses a marginal cost pricing rule, what would be the price of a kilowatt hour and how much power would be generated?
Refer to Figure 7-3. If there was no quota, how many pounds of peanuts would be imported?
A) 16 million B) 28 million C) 30 million D) 40 million
When the Fed sells bonds, the Fed:
A. reduces the reserves and the federal funds rate increases. B. increases the reserves and the federal funds rate increases. C. reduces the reserves and the federal funds rate decreases. D. increases the reserves and the federal funds rate decreases.
Which of the following statements is true about the effects of illegal immigration in the United States?
A. Illegal immigrant workers displace domestic-born workers on a one-for-one basis. B. Illegal immigration has a negative fiscal impact that falls most heavily on state and local governments. C. Illegal immigration negatively impacts wages and the standard of living for all domestic- born workers. D. All of these are true.