Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is making a profit in the long run.
C. The firm is making a loss in the short run.
D. The firm is making a loss in the long run.
C. The firm is making a loss in the short run.
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Why would a usury law result in banks making less credit available to low-income households?
What will be an ideal response?
Other things being equal, suppose that the demand for wheat in constant quality units increases. The increase in demand will cause
A) a surplus of wheat. B) a higher equilibrium price and higher equilibrium quantity of wheat. C) fall in the market clearing price of corn, a substitute for wheat. D) a higher equilibrium quantity, but a lower equilibrium price of wheat.
The market price for any good or service sold in a perfectly competitive market is determined by
A. Government regulation. B. Supply and demand. C. The largest firm in the industry. D. Strategic interaction.
If coal-burning electrical utility companies fully internalized pollution costs, then we could expect
A) an increase in electricity prices. B) a decrease in electricity prices. C) no change in electricity prices. D) a greater use of coal to produce electricity.