A firm pays a monthly lease of $10,000 and generates $8,000 of revenue a month. Which of the following is true?
A) Firms will enter the industry.
B) This firm will exit the industry in the long run.
C) The recoverable costs are less than the difference between revenues and variable costs.
D) The recoverable costs are less than operating profit.
Correct Answer:
Verified
Q66: Which of the following statements about cost
Q71: Figure: Profits and Competitive Firms Reference: Ref
Q72: (Table: Oil Production Costs) Refer to the
Q92: When marginal cost is rising, the average
Q96: Whenever marginal cost is greater than the
Q105: Firms should exit the market if:
A) sunk
Q106: A baker wants to establish a pie
Q112: Profit is positive whenever:
A) P < AC.
B)
Q114: Which of the following statements are TRUE?
Q134: A firm should exit the industry if
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