If the present value of all future revenue is positive, then
A) the firm should remain operating, even if it earns negative profit in the short run.
B) the firm should shut down if it is earning a negative profit in the short run.
C) the firm should shut down if it cannot cover its fixed costs in the short run.
D) Unable to determine with the information given.
D
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A wage rate that is adjusted for changes in the price level is known as the
A) nominal wage. B) minimum wage. C) functional wage. D) real wage.
What is quantitative easing? What was the Fed's objective in implementing quantitative easing?
What will be an ideal response?
A tax wedge is ________
A) the difference between the tax rate on income and capital gains B) equal to the difference between what people earn before and after taxes are accounted for C) the size of the decrease in labor force participation when labor income is taxed D) the difference between the rate on Treasury securities and the income tax rate
Who said "If it moves, tax it. If it still moves, regulate it. If it stops moving, subsidize it."?
A) Barack Obama B) Ronald Reagan C) Vilfredo Pareto D) Adam Smith