The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm
A) will definitely shut down to minimize its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.
D
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Which of the following statements is true?
A) Correlation can only arise when causation is not present. B) Causation can only arise when correlation is not present. C) Causation arises when there is correlation between two variables, and can also arise even when there is no correlation. D) Correlation arises when there is causation and can also arise even when there is no causation.
Why is the tax multiplier smaller (in absolute value) than the autonomous spending multiplier?
What will be an ideal response?