Shama is producing candles in a perfectly competitive market. When she produces 500 candles, her total cost is $250. If she produces one additional candle, her total cost increases to $260
In order to maximize her profit, she should produce the additional candle A) if the market price for a candle is $12.
B) only if the market price exceeds $260 for a candle.
C) only if the market price exceeds $250 for a candle.
D) if the market price for a candle exceeds $0.50.
E) if her price exceeds her average total cost.
A
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In the long run, firms in a competitive market
A) shut down because profit goes to zero. B) lose money. C) are not profit maximizing. D) earn zero economic profit.
If the annual inflation rate is higher than 0%, which of the following statements is correct?
a. The specific country is experiencing hyperinflation when viewed over a long period of time. b. Real GDP growth must be higher than nominal GDP growth. c. Nominal GDP growth must be higher than real GDP growth. d. Nominal GDP growth is only higher than real GDP growth if real GDP growth is positive. e. Nominal GDP growth must be positive.