Joe's Garage operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10 . In this situation,
a. Joe's Garage will break even
b. Joe's Garage will shut down immediately
c. the market price will fall in the long run
d. Joe's supply curve will shift to the left
e. Joe's Garage will suffer a loss in the short run, but stay in business
B
Economics
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A market system works very well in solving some basic problems of the economy but it fails in some cases. Provide examples
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As the U.S. economy relies more and more heavily on the production of services rather than goods,
A. International trade will become more difficult. B. Nearly all future job growth will be in service-producing industries. C. GDP will decrease since there will be less real production. D. Mass unemployment will result.
Economics