A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run?
A) Yes, it should continue to produce because its price exceeds its average fixed cost.
B) No, it should shut down because it is making a loss.
C) Yes, it should continue to produce because it is minimizing its loss.
D) There is insufficient information to answer the question.
C
Economics
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The largest single component of M2 is
A) currency held by the public. B) money market mutual funds. C) demand deposits. D) savings deposits.
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The expenditure multiplier is equal to the change in ________ divided by the change in ________
A) dependent expenditure; autonomous expenditure B) autonomous expenditure; equilibrium expenditure C) the price level; real GDP D) equilibrium expenditure; autonomous expenditure E) real GDP; equilibrium expenditure
Economics