Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering from a loss of $1,000, the cost of producing and selling an additional Christmas tree is $20, and the current market price is $25. The owner
A) should sell more trees.
B) should shut down his business now.
C) should advertise in the market.
D) is already minimizing his loss.
A
Economics
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Suppose that the firms in an oligopolistic industry successfully collude. What will be the outcome? Explain
What will be an ideal response?
Economics
The costs imposed by inflation should be lessened in the future because of the following reform that took place during the early 1980s
A) airline deregulation. B) issuance of indexed government bonds. C) changing tax laws to ensure that savers are taxed only on real, rather than nominal capital gains. D) lifting of limits on interest paid on checking and savings accounts.
Economics