A profit-maximizing firm in a competitive market will always make marginal adjustments to production as long as
a. average revenue is greater than average total cost.
b. average revenue is equal to marginal cost.
c. marginal cost is greater than average total cost.
d. price is above or below marginal cost.
d
You might also like to view...
Which of the following is an economic argument used to explain why slavery persisted in the U.S.?
(a) Slavery crushed out individualism among slaves. (b) The social structure of slavery did not permit black leaders to lead revolts. (c) Slavery was an overall moral institution. (d) Slavery was a rational institution.
Suppose that international trade is the only kind of international transaction between the United States and Canada. The United States currently is experiencing a balance of trade deficit with Canada. What would happen to the United States and Canadian money supplies if the United States and Canada both used the gold standard?
A) The U.S. money supply would rise and the Canadian money supply would fall. B) Both the U.S. and Canadian money supplies would rise. C) The U.S. money supply would fall and the Canadian money supply would rise. D) Both the U.S. and the Canadian money supplies would fall.
Of the four groups listed below, the highest unemployment rate is typically experienced by:
A. females as a group. B. males as a group. C. teenagers. D. persons who completed 1-3 years of high school.
Refer to the graph shown. In equilibrium, consumer surplus is equal to:
A. 1,400. B. 600. C. 1,200. D. 2,000.