A perfectly competitive firm is producing a good at a level where P = $30 and MC = $30. The firm will continue to produce in the short run as long as:
A. AVC is less than $30.
B. AFC is less than $30.
C. price does not increase.
D. ATC is greater than $30.
Answer: A
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Dumping occurs when a foreign firm ________
A) pollutes international waters B) disposes of waste materials in other countries C) sells inferior output to foreigners D) sells its exports at a lower price than its cost of production
A price taker is a buyer or seller who:
A. cannot affect the market price. B. takes the market price and chooses to increase or decrease it. C. takes prices in the area and averages them together to set the price for his/her good. D. can affect the market price, but only when collaborating with other buyers or sellers.
Exhibit 6-7 Marginal utility for sandwiches and sodas Quantity Sandwiches Sodas 1 10 5 2 8 4 3 6 3 4 3 1 5 ?1 0 Refer to Exhibit 6-7. If price of a sandwich is $1, the price of a soda is $1, and income is $5, Marian should buy ____ sandwiches and ____ sodas.
A. five; zero B. four; one C. three; two D. two; two
If coal-burning electrical utility companies fully internalized pollution costs, then we could expect
A. an increase in electricity prices. B. no change in electricity prices. C. a greater use of coal to produce electricity. D. a decrease in electricity prices.