Refer to the graph below for a purely competitive firm operating at a loss in the short run. Which of the following changes in its market would allow the firm to earn positive profits again?
A. An increase in the market demand
B. An increase in the wages of workers in the industry
C. A decrease in the price of raw materials used by firms in the industry
D. A decrease in the price of the industry's product
A. An increase in the market demand
Economics
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A decrease in government spending will result in a decrease in the price level and a decrease in real GDP in the long run
Indicate whether the statement is true or false
Economics
What is always true at the quantity at which average total cost equals average revenue?
a. economic profit is zero b. marginal cost equals marginal revenue c. economic profit is maximized d. revenue is maximized e. cost is minimized
Economics