Mars Inc produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
A) shut down as fixed costs are not being covered.
B) keep producing as profits are $50,000.
C) keep producing as variable costs are being met.
D) keep producing as total costs are being recovered.
C
Economics
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Which of the following is NOT a reason why natural GDP might fall as a result of a supply shock?
A) The production function shifts downward. B) There might be a voluntary decline in the supply of labor in response to the decline in real wages. C) The supply of labor is a function of the expected wage rate. D) none of the above
Economics
The Laffer curve shows as tax rates rise, tax revenue:
a. rises. b. first rises, then falls, and then rises again. c. falls. d. first rises, and then falls. e. remains at a constant level.
Economics