In the above figure, if price is equal to P4, the firm will
A) earn positive economic profits.
B) incur an economic loss.
C) earn zero economic profits.
D) shut down.
A
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If labor and capital are perfect complements in production, short run supply curves are vertical.
Answer the following statement true (T) or false (F)
Which of the following factors may cause velocity to fluctuate?
I. changes in interest rates II. changes in expectations about inflation III. changes in expectations about bond prices IV. an increase in the number of financial products that affects the demand for money A) I, II, III, and IV B) I, II, and III C) I, III, and IV D) I and II
Gross domestic product is
A. one of many indicators of prosperity, some of which are monetary, and some of which are not. B. the only indicator of prosperity that economists use. C. one of many indicators of prosperity, all of which are monetary in nature. D. not a useful indicator of prosperity.
A decrease in the Z factors shifts the aggregate demand curve to the left.
Answer the following statement true (T) or false (F)