A perfectly competitive firm's economic profit is maximized by producing the amount of output such that
A) total revenue equals total variable cost.
B) marginal revenue equals marginal cost.
C) total revenue equals total cost.
D) marginal revenue is equal to total revenue.
B
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Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?
“The United States has more oil in Alaska than there is oil in Kuwait. Therefore, the United States should stop importing oil.” Evaluate this statement using economic analysis.
What will be an ideal response?
Refer to the above table. MC is the lowest
A. between 3 and 4 units of output. B. at 0 units of output. C. between 0 and 1 units of output. D. between 1 and 2 units of output.
A firm uses an efficiency wage scheme to deter workers from shirking, which is detected 10% of the times. Suppose a risk-neutral worker. The industry ongoing wage is $3,000. The efficiency wage paid by this firm is $8,000. What is this worker's reservation wage?
A) $400 B) $500 C) $1,000 D) $1,500