International standards for risk-based capital requirements were introduced under the

A single-price monopolist is producing 8,000 units of output. At that level, price equals $10, average total cost equals $12, and average variable cost equals $8 . In addition, both marginal cost and marginal revenue equal $6 . Which of the following statements is correct in the short run?

a. The firm is earning total revenues equal to $96,000. b. The firm could reduce its loss by shutting down. c. The firm has a loss per unit equal to $4. d. The firm is minimizing its economic loss at $16,000. e. The firm is earning an economic profit equal to $16,000.

Suppose that for a monopolist, MR = MC = $10 and P = $15 at the profit-maximizing level of output. At this level of output, the firm

a. is earning a profit b. will shut down if AVC > $15 c. is making $5 profit on each unit sold d. will shut down if ATC > $15 e. is losing $5 per unit produced