In the above figure, at output levels between 5 units and 13 units
A. the firm is breaking even.
B. total revenue equals total costs.
C. the firm's economic profits are positive.
D. the firm's accounting profits are negative.
Answer: C
You might also like to view...
"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would have
A) a negative slope. B) a positive relationship. C) a direct relationship. D) a horizontal line.
Which of the following is an example of peak-load pricing?
A) Charging less for vacations to Hawaii during December and January B) Charging more for electricity on hot days C) Setting price equal to marginal cost when there is a capacity constraint D) Selling excess capacity at lower prices
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost. B. equal to marginal cost. C. below average total cost D. the same as in perfect competition.
The supply of foreign currencies is upward sloping and the demand for foreign currencies is downward sloping
a. True b. False Indicate whether the statement is true or false