When price exceeds average variable cost for a firm, it is possible that:
a. it is earning an economic profit.
b. it is breaking even
c. it is suffering an economic loss.
d. any of the above is true.
d
Economics
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Refer to Figure 12-4. If the market price is $30, should the firm represented in the diagram continue to stay in business?
A) No, it should shut down because it cannot cover its variable cost. B) Yes, because it is making a profit. C) No, it should shut down because it is making a loss. D) Yes, because it is covering part of its fixed cost.
Economics
Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
Economics