Author Question: If price is less than average fixed costs, a. the firm should operate, since it is making economic ... (Read 138 times)

michelleunicorn · **on:** Jun 30, 2018

If price is less than average fixed costs,
a. the firm should operate, since it is making economic profits.
b. the firm should operate in the short run, but it is making economic losses.
c. the firm should shut down in the short run.
d. We do not know whether a firm should continue operating or not.

Question 2

Someone who has the desire to work but has no exceptional abilities and has not acquired the skills necessary for a well-paying job is likely to escape poverty completely.
a. True
b. False
Indicate whether the statement is true or false