Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy aring. Austin pays $5,300 a month for a Web server and Internet connection. The rings that customers design are made to order by another firm, and Austin pays this firm $40 a ring. Austin has no other costs. The table shows the demand schedule for Austin's rings. Austin is making an economic profit. In the long run, the demand for Austin's rings long-run equilibrium, Austin OA. decreases; shuts down OB. decreases; incurs an economic loss OC. decreases; makes zero economic profit D. increases; increases his economic profit OE. increases; makes zero economic profit and in Price (dollars per ring) 200 160 120 80 40 0 ▸ Quantity (rings per month) 0 40 80 120 160 200

Austin is a dot-com entrepreneur who has established a Web site at which people can design and buy aring. Austin pays $5,300 a month for a Web server and Internet connection. The rings that customers design are made to order by another firm, and Austin pays this firm $40 a ring. Austin has no other costs. The table shows the demand schedule for Austin's rings. Austin is making an economic profit. In the long run, the demand for Austin's rings long-run equilibrium, Austin OA. decreases; shuts down OB. decreases; incurs an economic loss OC. decreases; makes zero economic profit D. increases; increases his economic profit OE. increases; makes zero economic profit and in Price (dollars per ring) 200 160 120 80 40 0 ▸ Quantity (rings per month) 0 40 80 120 160 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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