With average-cost pricing, the firm in Figure 8.14 would be:
A. making a zero economic profit.
B. losing money.
C. making a positive economic profit.
D. shut down.
Answer: A
Economics
You might also like to view...
A good that takes up a very large percentage of the consumer's budget will tend to have
a. an elastic demand b. a perfectly elastic demand c. an inelastic demand d. an upward-sloping demand curve e. very many substitutes
Economics
Enforcement of property rights is likely to result in: a. more incentives to invest
b. lower rates of economic growth. c. political instability. d. corruption.
Economics