Refer to Scenario 17.5. If low effort is exerted, expected income is

A) $5000.
B) $5500.
C) $6000.
D) $6500.
E) $7000.

B

Economics

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Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16 . What do you advise this firm to do?

a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $400. e. Stay at the current output; the firm is losing $200.

Economics

A supply curve:

a. has a negative slope. b. is based on the assumption of a stable demand curve. c. illustrates the negative relationship between price and quantity supplied. d. illustrates the positive relationship between price and quantity supplied. e. shifts about in random fashion.

Economics