In long-run equilibrium, a profit-maximizing firm in a monopolistically competitive industry produces the quantity of output where:
A. ATC = P, MR = MC < P.
B. ATC < P, MR = MC = P.
C. ATC < P, MR + MC < P.
D. ATC = P, MR = MC = P.
Answer: A
You might also like to view...
Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates
The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase? A) 2 B) 5 C) 0 D) 1
Total cost can be defined as:
A. the amount that an individual spends on all normal goods and services within a specified period of time. B. the amount that a firm spends on all inputs that go into producing a good or service. C. the amount that a firm receives from the sale of goods and services. D. None of these is correct.
Increased trade restrictions
A. Reduce total consumption possibilities. B. Alter a nation's production possibilities. C. Have a neutral impact since the losses cancel out the benefits. D. Increase a trade deficit in the short run.
What is the difference between buying stocks and buying bonds?
A) A stock can possibly pay dividends forever, but bonds have a fixed number of payments. B) Differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future. C) The future growth of a stock is more uncertain than the payments of a bond. D) All of these are differences between stocks and bonds.