A perfectly competitive firm is earning an economic profit when total fixed costs increase. Assuming the firm does not shut down, in the short run the firm will
A) charge a higher price.
B) produce more output so the extra revenue will cover the increased costs.
C) produce less output to decrease total costs.
D) continue producing the same quantity as before but will make less economic profit.
E) continue producing the same quantity as before and continue making the same economic profit as before.
D
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In the wake of Henry Ford's payment of efficiency wages in 1914 ________
A) absenteeism and productivity fell B) absenteeism and productivity rose C) absenteeism rose and productivity fell D) absenteeism fell and productivity rose
If a firm has total revenue of $200 million, explicit costs of $190 million, and implicit costs of $30 million, its economic profit is:
a. $200 million. b. $70 million. c. $10 million. d. ?$10 million. e. ?$20 million.