When a firm has an accounting profit that is negative, it Select one: O A. cannot be producing where price equals marginal cost. OB. will never produce output, even in the short run. OC has total revenue that is less than total cost. OD. may still have economic profit. 4
When a firm has an accounting profit that is negative, it Select one: O A. cannot be producing where price equals marginal cost. OB. will never produce output, even in the short run. OC has total revenue that is less than total cost. OD. may still have economic profit. 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:When a firm has an accounting profit that is negative, it
Select one:
4
OA. cannot be producing where price equals marginal cost.
OB. will never produce output, even in the short run.
OC. has total revenue that is less than total cost.
OD. may still have economic profit.
Which of the following combinations would constitute a vertical merger?
Select one:
OA. General Motors and Ford Motor Company
4
O B. General Motors and Bridgestone Tire Company
OC. Philip Morris and Barnes & Nobles Booksellers
OD. Philip Morris and RJ Reynolds
Which of the following would NOT be a short-run decision for the firm?
Select one:
OA. Have labor work two hours overtime each day in order to expand output.
B. Build another wing on the plant in order to add a new assembly line.
OC. Recall workers who were previously laid-off.
OD. Place an order with a supplier for additional raw materials.
Clear my choice
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