Refer to the following graph.
The perfectly competitive firm depicted is currently:
A. incurring a loss that is larger than total fixed cost, and so the firm should shut down.
B. earning positive economic profit.
C. incurring a loss, but the loss is smaller than the firm's total fixed cost.
D. earning zero economic profit.
Answer: C
You might also like to view...
Patents and copyrights are granted for a period of 20 years from the date of creation
Indicate whether the statement is true or false
Mutual recognition of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize.
In the 2-factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked when
A) there is no factor substitution in production. B) the opportunity cost of production is constant. C) there are unemployed factor resources. D) a country does not engage in trade. E) transportation costs are very high.
As long as prices are rising over time, then
a. the nominal interest rate exceeds the real interest rate. b. the real interest rate exceeds the nominal interest rate. c. the real interest rate is positive. d. the nominal interest rate is a better indicator than the real interest rate of how fast the purchasing power of your bank account is changing over time.