When a profit maximizing firm produces, they will be producing at that output at which marginal cost = marginal revenue
A. all of the time.
B. some of the time.
C. on rare occasions.
D. none of the time.
A. all of the time.
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Discuss the difference between a private cost and a social cost
What will be an ideal response?
Firms in an oligopoly market can potentially earn economic profits.
a. ?In the short run, but not the long run. b. ?In the long run, but not the short run. c. ?In both the short run and long run d. ?In neither the short run nor the long run
A good example of using the discount rate to serve the lender of last resort role for the financial system occurred during the
A) savings and loan crisis of the 1980s. B) stock market crash of 1987. C) sharp rise in government deficits during the 1980s. D) developing-country debt crisis of the 1980s.
According to the excess capacity theorem, if every firm under monopolistic competition expanded its output,
a. cost per unit of output would rise. b. social benefits would increase. c. cost per unit of output would decrease. d. MC and AC would remain unchanged.