That Table 8.1 shows a short-run situation is evident from:
A) the linear marginal revenue function.
B) the constant price.
C) the increasing marginal cost.
D) the presence of positive costs at Q = 0.
E) the absence of marginal values at Q = 0.

Question

Quizplus · Accepted Answer

The presence of positive costs at Q = 0 indicates that the firm has fixed costs and is operating in the short run. In the long run, all costs are variable and can be adjusted to zero if the firm chooses to exit the market. The other options do not necessarily indicate a short-run situation.