Table: Decision to Enter
Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day.
A) not enter; -$1,350
B) not enter; -$800
C) enter; $700
D) enter; $150
Correct Answer:
Verified
Q105: Firms should exit the market if:
A) sunk
Q106: A baker wants to establish a pie
Q107: Firms are profitable when price is:
A) greater
Q108: With fluctuating prices in an industry, firms
Q109: A firm pays a monthly lease of
Q111: Firms earn negative profit when price is:
A)
Q112: Profit is positive whenever:
A) P < AC.
B)
Q113: A firm should exit an industry if:
A)
Q114: Which of the following statements are TRUE?
Q115: If Tom sells 500 sandwiches for $7
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents