Developing new products and services as well as introducing new production methods are among the ways that ________ increases average labor productivity.

A catering company is producing at a point where its marginal costs are $25 and its fixed costs are $5000 . At the current price of $10 it is producing 50 meals. If the demand goes up, such that they can now charge $20 per meal, how much should the firm now produce?

a. 60 meals b. 70 meals c. 80 meals d. None, they should shut down

Economists say that a firm has a normal profit when:

a. it earns a return of at least 10 percent. b. its accounting profit is positive. c. it can pay all its variable costs. d. its economic profit is zero.