Answer the following statement(s) true (T) or false (F)

1. If a supplier’s price is higher than the market price in a perfectly competitive market, then the supplier will have difficulty selling her products.
2. To maximize profits, the firm wants to produce the amount that maximizes the difference between its total revenues and total costs.
3. Marginal revenue in a perfectly competitive firm is equal to the price of the good.
4. Step 2 of the three-step method involves finding total cost.
5. If total revenue is equal to total cost at q*, then the firm is generating economic profits.


1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. FALSE

Economics

You might also like to view...

Which of the following could result in a recession?

A) a rise in the price of oil B) an increase in investment C) a tax cut D) an increase in the quantity of money E) an increase in government expenditures on goods and services

Economics

Why are high domestic savings rates important?

What will be an ideal response?

Economics

Grocery coupons and mail-in rebates are forms of price discrimination

a. True b. False Indicate whether the statement is true or false

Economics

____ is an object in use as a medium of exchange, but which also has a substantial value in alternative uses.

A. IOU B. Commodity money C. Fiat money D. Deposit certificate

Economics