Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy aring. Austin pays $5,300 a month for a Web server and Internet connection. The rings that customers design are made to order by another firm, and Austin pays this firm $40 a ring. Austin has no other costs. The table shows the demand schedule for Austin's rings. Austin is making an economic profit. In the long run, the demand for Austin's rings long-run equilibrium, Austin OA. decreases; shuts down OB. decreases; incurs an economic loss OC. decreases; makes zero economic profit D. increases; increases his economic profit OE. increases; makes zero economic profit and in Price (dollars per ring) 200 160 120 80 40 0 ▸ Quantity (rings per month) 0 40 80 120 160 200
Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy aring. Austin pays $5,300 a month for a Web server and Internet connection. The rings that customers design are made to order by another firm, and Austin pays this firm $40 a ring. Austin has no other costs. The table shows the demand schedule for Austin's rings. Austin is making an economic profit. In the long run, the demand for Austin's rings long-run equilibrium, Austin OA. decreases; shuts down OB. decreases; incurs an economic loss OC. decreases; makes zero economic profit D. increases; increases his economic profit OE. increases; makes zero economic profit and in Price (dollars per ring) 200 160 120 80 40 0 ▸ Quantity (rings per month) 0 40 80 120 160 200
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
4help plz
![Austin is a dot-com entrepreneur who has established a
Web site at which people can design and buy aring.
Austin pays $5,300 a month for a Web server and Internet
connection. The rings that customers design are made to
order by another firm, and Austin pays
this firm $40 a ring. Austin has no other costs.
5
The table shows the demand schedule for Austin's
rings.
Austin is making an economic profit.
In the long run, the demand for Austin's rings
long-run equilibrium, Austin
OA. decreases; shuts down
OB. decreases; incurs an economic loss
OC. decreases; makes zero economic profit
OD. increases; increases his economic profit
OE. increases; makes zero economic profit
t
&
and in
Price
(dollars per ring)
200
160
120
80
40
0
▸
Quantity
(rings per month)
0
40
80
120
160
200
Next
mpts
ES](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F261fe478-9a63-43f4-8273-e136d9ac6809%2F4410ac4c-b324-4898-9a06-01659b0e1a9e%2Fefjdvf3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Austin is a dot-com entrepreneur who has established a
Web site at which people can design and buy aring.
Austin pays $5,300 a month for a Web server and Internet
connection. The rings that customers design are made to
order by another firm, and Austin pays
this firm $40 a ring. Austin has no other costs.
5
The table shows the demand schedule for Austin's
rings.
Austin is making an economic profit.
In the long run, the demand for Austin's rings
long-run equilibrium, Austin
OA. decreases; shuts down
OB. decreases; incurs an economic loss
OC. decreases; makes zero economic profit
OD. increases; increases his economic profit
OE. increases; makes zero economic profit
t
&
and in
Price
(dollars per ring)
200
160
120
80
40
0
▸
Quantity
(rings per month)
0
40
80
120
160
200
Next
mpts
ES
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education