If total revenue exceeds fixed cost, a firm
A) is making short-run profits.
B) should produce in the short run.
C) has covered its variable cost.
D) may or may not produce in the short run, depending on whether total revenue covers variable cost.
D
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Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory:
A) Wal-Mart was a dominant firm. B) Wal-Mart made empty threats. C) Wal-Mart employed a maximin strategy. D) Wal-Mart employed a preemptive strategy.
In the absence of discrimination, as human capital investments increase, wages will generally
A) decrease. B) increase. C) not change. D) increase or decrease.