In the short-run, can a firm stay in the market if its profit is negative?
A. Yes, because it may have contracts requiring it to stay open.
B. No, shutting down is the best option when profits are negative.
C. No, its investors will require it to shut down if it has negative profits.
D. Yes, if operating minimizes its losses.
Ans: D. Yes, if operating minimizes its losses.
Economics
You might also like to view...
Let S = y - (150 + 0.6y). Assume no government or foreign sectors. What is the consumption function?
A) C = 150 + 0.6y B) C = -150 - 0.6y C) C = 150 + 0.4y D) C = -150 + 0.4y
Economics
Which of the following countries had the lowest level of output per capita in 2014?
A) Spain B) France C) Italy D) German
Economics