If price is above average total costs, the firm
A) is earning positive profits.
B) is earning negative profits.
C) is making a normal rate of return on its capital investment.
D) may be earning a positive or negative profit depending upon costs.
Answer: A
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The small-economy assumption is necessary to analyze the gains and losses from international trade
a. True b. False Indicate whether the statement is true or false
A government-imposed restriction on the quantity of a good that can be imported is
A. a health restriction. B. a protective tariff. C. an embargo. D. a quota.
One problem with employer mandated health insurance is _____
a. it increases the cost of hiring employees b. it makes it difficult to employ highly-skilled individuals c. it provides universal coverage d. it creates moral hazard
Some call the Great Recession the:
A. period when the economy does not grow for four consecutive quarters. B. recession that began in 2007 due to the decline in consumer spending when the housing bubble burst. C. period of high inflation that took place in the early 1970s. D. period of economic stagnation that took place in the early 1990s.