A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the short run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week
b. Shut-down as price is lower than average cost
c. Continue operating as the firm is covering all the variable costs and some of the fixed costs
d. Shut-down because it is cost effective to pay off the remaining fixed costs
c
Economics
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A) real business cycle theory B) traditional Keynesian theory C) new Keynesian theory D) post classical theory
Economics
One thing the simple circular flow model shows is ______.
a. that firms pay households for capital inputs b. where political power is concentrated c. that firms are the buyers in product markets d. the average capital holdings of households
Economics