Suppose a competitive firm's total revenue is $1,000,000 where MR = MC, its explicit variable costs are $900,000, its fixed costs are $90,000 of which $60,000 are sunk in the short run. If its implicit opportunity costs are $50,000, the firm should
A) produce because its economic profit is positive.
B) produce because its economic profit is zero.
C) produce even though its economic profit is negative.
D) shut down.
C
Economics
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When government outlays exceed tax revenue, the situation is called a budget
A) with a negative balance. B) deficit. C) surplus. D) debt. E) with no balance.
Economics
For a monopsonist, the labor supply curve is upward sloping because
A) the monopsonist must compete with other industries for that labor. B) the monopsonist requires that the laborers are highly skilled. C) the monopsonist is the only buyer in that labor market. D) the monopsonist restricts the supply of labor.
Economics