Marty's Bird House Suffers a Short-Run Loss

question 95

Multiple Choice

Marty's Bird House suffers a short-run loss.Marty can reduce his loss below the amount of his total fixed costs by continuing to produce if his revenue

• A)exceeds his implicit costs.
• B)exceeds his nonmonetary opportunity costs.
• C)exceeds his variable costs.
• D)exceeds his marginal costs.

Understand the economic implications of hiring practices and service contracts.

Understand the concept of moral hazard in the context of insurance and employment.

Distinguish between moral hazard and adverse selection.

Identify the impact of safety measures and monitoring on behavior change.