​A Firm Sells 1000 Units Per Week

question 77

Multiple Choice

​A firm sells 1000 units per week.It charges $70 per unit,the average variable costs are $25,and the average costs are $65.In the long run,the firm should

• A)​Shut down since price is greater than average cost
• B)Continue operating price is higher than average cost,its making a profit
• C)Continue operating as the firm is covering all the variable costs and some of the fixed costs
• D)​Shut-down because it is cost effective to pay off the remaining fixed costs

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Definitions:

U.S. Prices

Pertains to the cost of goods and services within the United States, which can be influenced by factors like inflation, demand, and economic policies.

1990s

The decade spanning from January 1, 1990, to December 31, 1999, characterized by significant global political, technological, and cultural changes.

1970s

The decade spanning from 1970 to 1979, marked by significant political, social, and technological changes worldwide.

Quantity of Money

The total amount of money available in the economy, comprising various forms of currency and bank deposits.