Refer to the information provided in Figure 13.5 below to answer the question that follows. 
Figure 13.5 Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. This company is
A. earning an economic profit.
B. breaking even.
C. suffering an economic loss and not covering its variable costs.
D. suffering an economic loss but covering its variable costs.
Answer: C
You might also like to view...
Explain what an entrepreneur is and its function
What will be an ideal response?
If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer.
B. some surplus is transferred from producer to consumer.
C. all consumers are made better off.
D. all producers are made better off.
AACSB: Knowledge Application
One reason the Fed tolerates ongoing inflation is because it
a. believes that the CPI understates the actual inflation rate b. believes that the CPI overstates the actual inflation rate c. accepts the idea that a zero inflation rate would make labor markets work more smoothly d. wants to focus more on price stability than on full employment e. is uncertain about the long-run stability of the Phillips curve
Spending on R&D among a group of firms is equally likely to increase or to decrease
a. True b. False Indicate whether the statement is true or false