In the short run, if a firm's price is greater than its AVC but less than its ATC, the firm should:
a. shut down immediately because it is generating an economic loss.
b. shut down temporarily because it is generating an economic loss.
c. continue operating because it is generating an economic profit.
d. continue operating even though it is generating an economic loss.
d
Economics
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Suppose the long-run cost function is C = 3q. What is the cost-output elasticity for this case?
A) 1 B) 3 C) 1/3 D) 2
Economics
For which pairs of goods is the cross-price elasticity most likely to be negative?
a. peanut butter and jelly b. automobile tires and coffee c. pens and pencils d. paperback novels and electronic books for e-readers
Economics