Technically speaking, if price > AVC, then
a. TR > TC
b. profit is positive
c. TR > TVC
d. profit is negative
e. the firm should shut down
C
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Rate of return regulation will
a. always result in the firm producing the quantity that would be produced if the market were competitive. b. always result in the firm producing less than the quantity that would be produced if the market were competitive. c. always result in the firm producing more than the quantity that would be produced in a competitive industry. d. result in a new equilibrium with either more or loss produced in comparison to a competitive market.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In most countries in South America, the legal driving age is 18
If the legal driving age in the United States was raised from 16 to 18, how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?
The profit-maximizing level of output for any firm in a perfectly competitive market is to produce where:
A. MC = MR. B. MC > MR. C. MC < MR. D. MR = P*.