Will a perfectly competitive firm ever produce in the short run even though it is suffering an economic loss?
What will be an ideal response?
Yes, a perfectly competitive firm will continue to produce even though it is suffering an economic loss if the price exceeds the minimum average variable cost. In this case, even though the firm has an economic loss, if it shut down, its economic loss would be larger.
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Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers b. Workers, age 25 or older, who are college graduates c. White women d. Workers, 25 years of age or older, who are high school dropouts e. White teenagers
Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. The lowest output this firm would produce before shutting down is ________ unit(s).
A. 1 B. 2 C. 3 D. 4