Profits when a competitive firm shuts down are -$7,250 and profits are -$250 when the firm continues to produce. This firm will minimize losses by
a.shutting down
b.continuing to produce
c.either shutting down or continuing to produce
d.decreasing production
b. continuing to produce
You might also like to view...
A firm's total product curve shows
A) that inefficiency is not possible. B) how the cost of the fixed resources change when output changes. C) how the amount of output changes when the quantity of labor changes. D) that in the long run the firm must adjust the quantity of all the resources it employs.
The Environmental Kuznets Curve
a. models a theorized relationship between environmental pollution and population b. is positively sloped and linear c. illustrates the relationship between economic growth and environmental degradation d. graphs as a U-shaped curve
Which of the following market structures results in a deadweight loss in the long run?
a. Perfect competition and monopolistic competition b. Monopolistic competition and monopoly c. Perfect competition and monopoly d. All of these market structures lead to a deadweight loss in the long run
In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for