The above figure shows a perfectly competitive firm. If the market price is $5 per unit, the firm
A) will definitely shut down to minimize its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.
A
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"Price" in the statement of the Law of Supply refers to:
A. The amount that buyers are willing and able to pay for each unit of the product B. The cost of producing each unit of the product C. The total revenues that sellers receives for selling a given quantity of the product D. The total amount that buyers pay in order to acquire a given quantity of the product
The combination of expansionary U.S. monetary policy and contractionary U.S. fiscal policy should:
A. raise the exchange rate if prices and income do not change. B. have an ambiguous effect on the exchange rate if prices and income do not change. C. not affect the exchange rate if prices and income do not change. D. reduce the exchange rate if prices and income do not change.