The market for watermelons in Alabama is perfectly competitive. A watermelon producer making zero economic profit could make an economic profit if the
A) average total cost of selling watermelons does not change.
B) average total cost of selling watermelons rises.
C) average total cost of selling watermelons falls.
D) marginal cost of selling watermelons does not change.
E) marginal cost of selling watermelons rises.
C
You might also like to view...
Which of the following is TRUE regarding perfect competition? I. The firms are price takers. II. Marginal revenue equals the price of the product. III. Established firms have no advantage over new firms
A) I and II B) II and III C) I, II and III D) I only
The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,
a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans. b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply. c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves. d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.