A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the short run, this firm is
a. incurring a loss of $2.00 per unit and should shut down
b. unable to cover all of its fixed cost and hence should shut down.
c. incurring a profit.
d. incurring a loss per unit of $2.00, but since it can still cover its variable costs, should continue to operate
d
Economics
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The Federal Reserve can directly affect its monetary policy ________, which then affect its monetary policy ________
A) goals; targets B) targets; tools C) targets; goals D) goals; tools
Economics
When the government has a surplus, as occurred in the late 1990s, the ________ curve of bonds shifts to the ________, everything else held constant
A) supply; right B) supply; left C) demand; right D) demand; left
Economics