A perfectly competitive firm will always maximize profits by producing where
a. per-unit costs are lowest.
b. total costs and total revenue are equal.
c. P = MC.
d. P = AC.
c
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The aggregate demand curve or schedule shows the relationship between the total demand for output and the ________.
A. income level B. price level C. interest rate D. real GDP
The ________ the exchange rate, the ________ are foreign-produced goods and hence the smaller the quantity of dollars supplied
A) lower; more expensive B) lower; cheaper C) greater; cheaper D) greater; more expensive
Railroads have received significant attention from regulators because
A. railroads enjoy significant economies of scale. B. conditions in the railroad industry are conducive to destructive competition. C. regulators would like to ensure universal service to all potential railroad customers. D. railroads are vulnerable to predatory pricing.
If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC B) MR = MC C) p ? AVC D) All of the above