Assume a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit.
b. continue to operate in the short run.
c. shut down.
d. all of these are true.
b
Economics
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The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant $4 a bottle and has no fixed cost. Wanda's makes an economic profit of ________ a day
A) $0 B) $24 C) $36 D) $60
Economics
The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as
A) fiscal neutrality. B) a recession. C) complete crowding out. D) inflation.
Economics