In the short run, the price at which a firm's total revenues equal its total costs is
A) a point of positive profits.
B) a no return price.
C) the short-run shutdown point.
D) the short-run break-even point.
Answer: D
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Which of the following is an example of using the scientific method with a natural experiment?
a. measuring how long it takes a marble to fall from a ten story building b. comparing plant growth with and without a soil additive c. tracking the price of oil when a war in the Middle East interrupts the flow of crude oil d. observing the reaction when two chemicals are mixed together
________ are forces that cause a reduction in a firm's average cost as the scale operation increases in the long run. ________ are forces that cause a firm's average cost to increase as the scale of operation increases in the long run
a. Diseconomies of scale; economies of scale. b. Economies of scale; diseconomies of scale. c. Increasing returns to a factor; decreasing returns to a factor d. Decreasing returns to a factor; increasing returns to a factor