Suppose at a certain quantity of output, a firm's average-total-cost curve lies above its demand curve. At this quantity of output, the firm:
a. is earning negative economic profit.
b. is earning zero economic profit.
c. is maximizing profit.
d. should increase its output to maximize profit.
e. should reduce output to maximize negative economic profit.
a
You might also like to view...
A central management concept is _______________ which is concerned with how time spent in one activity takes away from time spent in another activity
a. time displacement b. time exploitation c. time strategy d. time aspiration
When the economy is operating at an output rate less than full-employment capacity,
a. a strong demand for resources will cause resource prices to rise. b. actual unemployment will be less than the natural rate of unemployment. c. the rate of inflation will tend to rise. d. weak demand for investment will place downward pressure on real interest rates.