A firm ________ in the short-run has an incentive to expand its long-run scale of operation.
A. breaking even
B. earning positive profits
C. making a loss
D. that shuts down
Answer: B
You might also like to view...
The larger the implicit costs of a business:
A. the greater accounting profit will be. B. the smaller economic profit will be. C. the more likely it will be a successful venture. D. the smaller the explicit costs will be.
One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources
a. True b. False Indicate whether the statement is true or false
A profit maximizing monopolist faces the following information: P = $4, MR = $2, MC = $1.50. The firm should
A. shut down. B. stay at its current level of output. C. decrease output. D. increase output.
An entrepreneur would be least likely to develop a product if expected average total cost is:
A. $50 and expected price is $50. B. $60 and expected price is $65. C. $50 and expected price is $75. D. $65 and expected price is $40.