If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
A. will continue to operate at a loss.
B. will earn a positive profit.
C. will go out of business.
D. should decrease price.
Answer: C
Economics
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An increase in the labor force shifts the production possibilities frontier inwards over time
Indicate whether the statement is true or false
Economics
Refer to the above figure. If the economy is currently operating at point C, then there is
A) a stable long-run equilibrium situation. B) a recessionary gap. C) an inflationary gap. D) unemployment.
Economics