The figure above shows Mollie's Mugs' costs of producing mugs. The mug market is perfectly competitive
If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is ________ an hour and it incurs an economic loss of ________ an hour. A) $160; $280
B) $8; $14
C) $0; $120
D) $0; $6
C
You might also like to view...
The time it takes to pass legislation to implement a particular policy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices multimarket price discrimination, which country's consumers will pay a higher price and by how much?