Refer to Figure 13-4. Should the firm represented in the diagram continue to stay in business despite its losses?
A) No, it is not able to cover its fixed cost.
B) Yes, it should increase its revenue by raising its price.
C) Yes, its total revenue covers its variable cost.
D) No, it should shut down.
C
You might also like to view...
When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,
a. producer surplus increases and total surplus increases in the market for that good. b. producer surplus increases and total surplus decreases in the market for that good. c. producer surplus decreases and total surplus increases in the market for that good. d. producer surplus decreases and total surplus decreases in the market for that good.
The efficient markets hypothesis implies
a. that all stocks are fairly valued all the time and that no stock is a better buy than any other. b. that all stocks are fairly valued all the time, but that some stocks may be better buys than other. c. that some stocks may be better buys than others and stock experts can determine which ones. d. that no stock is efficiently valued.