If market price is greater than the minimum of avc but below the minimum of ac, then a. revenue covers variable costs and some of the fixed costs and profit is positive. b. revenue covers variable costs and some of the fixed costs, although profit is negative. c. the firm will shut down. d. economic profit is zero.
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Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.
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If market price is greater than the minimum of avc but below the minimum of ac, then a. revenue cove...
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