The above figure shows the cost curves for a typical firm in a competitive market. If p = 10, then
A) the firm will maximize its profit by producing 5 units.
B) the firm will maximize its profit by producing 60 units.
C) producing 5 or 60 units will yield equal profits.
D) Not enough information.
B
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A barrier to entry is
A) the economic term for diseconomies of scale. B) illegal in most markets. C) anything that protects a firm from the arrival of new competitors. D) a factor that increases competition because firms must continue to operate in the market in which they were founded. E) the same as rent seeking.
The GDP deflator is the
A) difference between real GDP and nominal GDP multiplied by 100. B) difference between nominal GDP and real GDP divided by 100. C) ratio of nominal GDP to real GDP multiplied by 100. D) ratio of real GDP to nominal GDP multiplied by 100.
In practice, monopolistically competitive markets are:
A. very rare. B. very common. C. virtually nonexistent. D. the only type of market that truly exists.
Monetary policy can influence interest rates, which in turn can change spending
a. True b. False Indicate whether the statement is true or false