In the above figure, assume d3 is the demand curve faced by this firm. Which is TRUE?
A) This firm is earning an economic profit.
B) This firm is experiencing an economic loss.
C) This firm is breaking even.
D) This firm's total revenues equal HRD0.
C
Economics
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If the tax function is T = t0 + t1Y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP per unit change in t0 (?Y/?t0) will be
a. ? 1. b. + 1. c. ? 1.5. d. ? 2. e. + 1.5.
Economics
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Economics