Refer to Figure 12-7. If the market price is P3 the firm
A) will earn enough revenue to cover its variable costs but not its fixed costs.
B) will break even.
C) will make a profit.
D) will produce a quantity of Q1.
C
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Point F
A. is where the United States' economy operates most of the time.
B. is unattainable.
C. represents a severe recession.
D. can be temporarily attained under unusual circumstances.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could not make would be:
A. (400 iPods, 250 tablets). B. (300 iPods, 500 tablets). C. (200 iPods, 750 tablets). D. (100 iPods, 1,000 tablets).
Your utility function is given by U = M2. You are
A. a risk seeker. B. risk averse. C. risk neutral. D. it is impossible to say.
The World View article "Russia's Sable Monopoly Persists" provides evidence that
A. Output of sable is lower than it would be in a competitive market. B. There are no barriers to entry in the sable market. C. Long-run economic profit is zero. D. Prices are lower than they would be in a competitive sable market.