Author Question: I'm losing money, but since my fixed costs are so high, I simply cannot afford to shut down. If the ... (Read 27 times)

penguins · **on:** Jun 30, 2018

I'm losing money, but since my fixed costs are so high, I simply cannot afford to shut down. If the firm were attempting to maximize profit, this decision may be:
a. correct if price is less than average variable cost.
b. incorrect because a firm experiencing economic losses should never continue to operate.
c. correct if the firm is covering all of its variable costs.
d. incorrect since a firm should shut down whenever price falls below average total cost in the short run.

Question 2

A Gini of 0 implies that:
a. every family has an equal amount of income.
b. the top 10 of the families appropriate almost 100 of the total income.
c. the bottom 90 of the families have only 10 of the total income.
d. the bottom 20 of the families have 80 of the total income.
e. only 1 family appropriates the entire national income.