In the short run, a perfectly competitive firm's production decision aims to maximize profits at the production rate where P = MR = MC.
Answer the following statement true (T) or false (F)
True
If an extra unit brings in more revenue than it costs to produce, it is adding to total profit. Hence a competitive firm wants to expand the rate of production to the point where price (MR) is equal to MC.
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What does the U.S. business cycle experience suggest about periods of war?
A) the economy tends to boom during the period of war B) after the war is over, the economy typically experiences a downturn C) they are associated with good economic times D) all of the above E) none of the above
Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP)? a. GDP includes the cost of polluting the environment, while NDP does not
b. GDP excludes net taxes, while NDP includes it. c. GDP excludes that part of the capital stock used up in the production process, while NDP includes it. d. GDP includes all government spending, while NDP excludes government spending. e. GDP includes that part of the capital stock used up in the production process, while NDP does not.
A firm may find it optimal to stay in business in the short run even if total revenue does not cover total cost
a. True b. False
Because firms selling a homogeneous product set price in response to the (perceived) pricing decision of other firms in the Bertrand Model of oligopoly in equilibrium price exceeds marginal cost
Indicate whether the statement is true or false