The first-order condition for maximizing net benefits is:
A. dN/dQ = 0.
B. d2N/dQ2 = 0.
C. dB/dQ = 0.
D. dC/dQ = 0.
Answer: A
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A firm might be tempted to cheat on a collusive price-fixing agreement by setting a ________ price and producing ________ than agreed upon
A) lower; more B) lower; less C) higher; more D) higher; less
Why is the equilibrium price the best deal available for both buyers and sellers?
What will be an ideal response?
When some firms leave a perfectly competitive market, the price:
A. falls, and profits of those left rise. B. falls, and profits of those left fall. C. increases, and profits of those left rise. D. increases, and profits of those left fall.
Which of the following is a result of firms having productive and allocative inefficiencies?
a. Consumers get steadier prices. b. Consumers get lower prices. c. Consumers get more product choices. d. Consumers get fewer product choices.