A firm in a perfectly competitive industry faces the following cost and revenue conditions: ATC = $6; AVC = $3; MR = MC = $5. The firm is
A) earning economic profits.
B) experiencing economic losses.
C) experiencing zero profits.
D) in a position in which it should shut down.
B
Economics
You might also like to view...
By 2000, the percentage of U.S. adults with a college diploma was _____
a. 18.7 percent b. 21.3 percent c. 25.6 percent d. 29.9 percent
Economics
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Wage rates rise, SRAS rises, and the SRAS curve shifts to the left. B) The prices of nonlabor inputs rise, SRAS decreases, and the SRAS curve shifts to the right. C) Labor productivity rises, SRAS increases, and the SRAS curve shifts to the right. D) An adverse supply shock hits, SRAS decreases, and the SRAS curve shifts to the right. E) a and c
Economics