Below the short-run shutdown price, the firm
A) is earning positive economic profits.
B) is earning negative economic profits.
C) is making a normal rate of return on its capital investment.
D) may be earning a positive or negative economic profits depending upon costs.
Answer: B
Economics
You might also like to view...
The signaling theory of education is most similar to the
a. human capital theory of education. b. discrimination theory of advertising. c. signaling theory of advertising. d. efficiency wage theory of labor economics.
Economics
The demand for dollars will increase when
A) real interest rates in the United States fall. B) U.S. labor productivity increases relative to the world. C) the world is perceived as more stable than it used to be. D) U.S. residents develop a taste for more imported products.
Economics