A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit. The firm's average fixed cost is $0.75 and its average total cost is $2.80 . In the short run, should the firm continue to operate?
Yes, the firm should continue to operate since the price of $2.50 exceeds the average variable cost, which is $2.05.
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Refer to Scenario 12.2. If each player plays an ideal mixed strategy, then either Jerome or Eliza, but not both, will donate a kidney about ________ of the time
A) 6.25% B) 12.5% C) 37.5% D) 56.25%
The labor force participation rate
A) increases as the real wage increases. B) decreases as the real wage increases. C) has nothing to do with the real wage rate. D) increases as the opportunity cost of working increases. E) is one of the major reasons that firms pay efficiency wages.
A monopolistically competitive firm makes positive economic profits if ________
A) price is less than average total cost B) price is higher than average total cost C) price equals marginal cost D) price equals average fixed cost
Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?
A. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right B. Hurricanes during the late summer damage the Florida crop, shifting supply left C. Advertising for ketchup increases demand for ketchup, shifting the demand curve to the left D. A reduction in tariffs of tomatoes from Central American, shifting supply right