Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
A) shut down
B) continue operating in the short run even though it is losing money
C) continue operating because it is earning an economic profit
D) Cannot be determined from the above information
C
Economics
You might also like to view...
Stockholders are the owners of which type of business?
A) corporations B) sole proprietorships C) partnerships D) all of the above
Economics
Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita
A) oranges and peaches are normal goods. B) oranges and peaches are substitutes. C) oranges and peaches are complements. D) oranges and peaches are inferior goods.
Economics