Which of the following statements is true?
a. To maximize profits, a firm must maximize total revenue.
b. In long-run equilibrium, a competitive firm produces at the point of minimum average total cost.
c. In the short-run, a perfectly competitive firm produces where total cost is minimum.
d. In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.
b
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From the long-run perspective of economic growth, saving
A. Shifts the production possibilities curve inward. B. Is a basic source of investment financing. C. Threatens growth because of the paradox of thrift. D. Causes the long-run aggregate supply curve to shift to the left.
A rise in X-inefficiency:
A. does not affect costs, only the price and quantity. B. shifts the ATC curve up. C. shifts the ATC curve down. D. shifts the ATC curve down or up, depending on the nature of the inefficiency.
States can allow exceptions to Temporary Aid to Needy Families' (TANF) 60-month rule for up to 20% of recipients.
Answer the following statement true (T) or false (F)
Which of the following results from unexpected increases in the rate of inflation?
A. Creditors are made better off. B. Redistributions of income and wealth between different groups. C. Decreased uncertainty. D. Increased windfall profits to creditors who have lent large amounts of money.