If a competitive firm’s short-run average cost curve lies above the price of the product, we can conclude that the firm
A. is earning a huge profit.
B. is incurring losses.
C. is earning zero economic profits.
D. is earning a normal profit.
Answer: B
Economics
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The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D2?
A) a decrease in the price of iPods B) a decrease in the price of Zunes, a substitute for iPods C) an increase in the price of iPods D) a decrease in people's incomes if iPods are a normal good E) a requirement that all students at universities have an iPod
Economics
Why do economists sometimes treat decision makers as boundedly rational?
Economics