Multiple Choice
If the present value of all future profit is positive, then
A) the firm should remain operating, even if it earns negative profit in the short run.
B) the firm should shut down if it is earning a negative profit in the short run.
C) the firm should shut down if it cannot cover its fixed costs in the short run.
D) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: If a firm cannot earn profits in
Q47: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6808/.jpg" alt=" -The above figure
Q50: Market structure depends upon<br>A)the ease of entry
Q51: If a short-run fixed cost is sunk,
Q56: If a firm can borrow money at
Q57: An oligopoly<br>A)requires government licensing.<br>B)has relatively few firms,
Q58: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8230/.jpg" alt=" -The above figure
Q59: All of the following are characteristics of
Q81: Even though fixed costs do not affect
Q83: If marginal revenue equals marginal cost,the firm