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A firm ________ in the short-run has an incentive to expand its long-run scale of operation.

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A firm ________ in the short-run has an incentive to expand its long-run scale of operation.

Question 1.

The Reliable Auto Repair Shop has total revenue of $5,000. It has total fixed costs of $700 and total variable costs of $2,500. The Reliable Auto Repair Shop's profit is

▸ -$3,200.

▸ $1,800.

▸ $2,500.

▸ $4,300.

Question 2.

A firm ________ in the short-run has an incentive to expand its long-run scale of operation.

▸ breaking even

▸ earning positive profits

▸ that shuts down

▸ making a loss

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 78 times

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