The owner of a perfectly competitive firm is currently earning an economic profit of zero. This owner
A) should shut down since profits of zero are not good.
B) should raise the price of the product to increase profits.
C) is covering all of his fixed costs.
D) will continue producing in the short-run but will shut down in the long run if profits do not increase.
C
Economics
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When the interest rate is considered higher than normal, the speculative demand for money ________, the transaction demand ________
A) increases; decreases B) decreases; increases C) remains the same; decreases D) first increases then decreases; remains the same
Economics
A firm uses two inputs, A and B. At its optimal choice of input proportions,
A. MRP of A = MRP of B. B. MRPA/PA= MRPB/PB. C. MPP of A = MPP of B. D. All of the responses are correct.
Economics