Refer to the graph shown. If this firm is maximizing profit, it will:
A. earn just normal profits, that is, zero economic profits.
B. earn economic profits.
C. make enough to cover its variable costs but not its fixed costs.
D. incur a loss.
Answer: B
Economics
You might also like to view...
Zara is the largest fashion retailer in Europe. Which of the following would not a barrier to entry that protects Zara's market power?
a. two weeks to develop and deliver a new item, as opposed to an industry average of nine months b. 10,000 new designs a year c. stores can restock in a few days d. little advertising e. new fashions distributed twice a week, as opposed to twice a season
Economics
Other things remaining the same, an increase in the real risk-free interest rate causes the velocity of money to:
a. Rise. b. Fall. c. Not change.
Economics