Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands.Her weekly total revenue equals $3,500.Her weekly total cost of running the stand equals $3,500, consisting of $2,500 of variable costs and $1,000 of fixed costs.An economist would likely advise Darlene to:
A) shut down as quickly as possible because the stand is generating losses.
B) keep the stand open because it is generating a normal profit.
C) keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs.
D) keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.
E) shut down as quickly as possible because the stand is generating no economic profit.
Correct Answer:
Verified
Q46: If a profit-maximizing firm finds that price
Q64: Which of the following is true of
Q65: Assume that the equilibrium price in a
Q66: A profit-maximizing firm that is operating in
Q68: Assume a perfectly competitive firm sells its
Q70: What is the maximum amount of profit
Q71: In perfect competition, at the firm's profit
Q71: If a perfectly competitive firm is operating
Q74: If the market price was $9.50,
Q154: In the short run,a perfectly competitive firm
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents