A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A. price is equal to minimum ATC
B. price is below minimum AVC
C. price is above minimum ATC
D. price is above minimum AVC
Answer: D
Economics
You might also like to view...
During the early 1930s, the Fed was reluctant to rescue nonsolvent banks out of fear of encouraging:
A) moral hazard B) adverse selection C) bank run D) sovereign debt crisis
Economics
If people become pessimistic about the state of the economy, the consumption function shifts downward
a. True b. False Indicate whether the statement is true or false
Economics