Author Question: If the electric company is allowed by regulators to earn only a normal profit, it will produce at ... (Read 36 times)

cdr_15 · **on:** Jun 30, 2018

If the electric company is allowed by regulators to earn only a normal profit, it will produce at the point where
a. MR = MC
b. P = MC
c. MC = quantity demanded
d. P = AC
e. MR = AC

Question 2

If Harry's Blueberries, a perfectly competitive firm, shuts down in the short run, Harry must pay
a. variable cost but not fixed cost
b. no costs at all
c. variable cost and fixed cost
d. only variable cost
e. only fixed cost