Refer to the above figure. In order to stay open in the short run, this firm must

A) earn a positive profit.
B) receive a price equal to or greater than the minimum of its average variable cost.
C) receive a price exactly equal to its average total cost.
D) recover its fixed cost.

B

Economics

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The tax base of the value added tax and a turnover tax are the same

a. True b. False

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Suppose a tax has been imposed in the graph shown. Which kind of tax is most likely demonstrated by this graph?

A. A tax on sellers B. A tax on big corporations C. A price ceiling D. A tax on buyers

Economics