If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm
A) is earning a profit.
B) should shut down.
C) is incurring a loss.
D) is breaking even.
Answer: C
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In which of the following cases does the tragedy of the commons occur? I. Cattle grazing on private ranches. II. Catching lobsters off the coast of Florida. III. Raising salmon on salmon farms. IV. Using legal services provided by the courts
A) I only B) II only C) II and III only D) I and IV only
With a monopsony in the labor market, a union can often raise wages and the number of workers hired
a. True b. False Indicate whether the statement is true or false
Refer to Figure 1A.1. The slope of the line between the points where hours worked per week are 20 and hours worked per week are 30 is:
A. 0.2. B. 5. C. 10. D. 50.
An economist left her $100,000-a-year teaching position to work full-time in her own consulting business. In the first year, she had total revenue of $200,000 and business expenses of $100,000 . She made a(n):
a. economic profit. b. economic loss. c. implicit profit. d. accounting loss but not an economic loss. e. zero economic profit.