A firm stands to lose by operating instead of shutting down if ________ does not sufficiently cover ________.
A. total revenue; total costs
B. price; average fixed cost
C. operating profit; economic profit
D. price; average variable cost
Answer: D
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From the table above, which gives data about the U.S. labor market in 1933, the unemployment rate is
A) 2 percent. B) 18 percent. C) 20 percent. D) 25 percent. E) 35 percent.
In the above figure, which part corresponds to an increase in the money wage rate?
A) Figure A B) Figure B C) Figure C D) Figure D
When a firm generates external benefits, a more efficient outcome would result if
a. the firm produced a larger output level. b. the firm reduced its output level. c. a tax were levied on the firm equal to the dollar amount of the externalities. d. price were fixed below the firm's per-unit cost.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.
A) definitely falls, is indeterminate
B) is indeterminate, definitely falls
C) definitely falls, definitely rises
D) definitely rises, is indeterminate