Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands rises above the minimum of its average variable cost, but still lies below the minimum of average total cost, in the short run the firm will
a. experience losses but will continue to produce rubber bands.
b. shut down.
c. earn both economic and accounting profits.
d. raise the price of its product.
a
Economics
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Suppose an economy experiences a 5% increase in human capital. We know that this will cause
A) Y/N to increase by more than 5%. B) Y/N to increase by exactly 5%. C) Y/N to increase by less than 5%. D) no change in Y/N. E) a reduction in output per worker.
Economics
When the price of a good is a constant, the marginal revenue per unit of output is the same as:
a. total revenue. b. average total cost. c. price. d. quantity of output. e. profit per unit.
Economics