According to the table shown, when 5 units are produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. profits are maximized.
B. profits are positive.
C. the firm is producing less than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
D. the firm is producing more than the profit-maximizing amount.
You might also like to view...
Most doctors and hospitals operate as private businesses in all of the following countries except
A) the United Kingdom. B) the United States. C) Japan. D) Canada.
Economic agents (for example, consumers or firms) often do things that at first glance seem to be inconsistent with their self-interest
People tip at restaurants and when they are on vacation even if they have no intention to return to the same place. Firms, sometimes, install costly pollution abatement equipment voluntarily. How can these deviations from Nash predictions be explained?
Someone who values a lottery at its expected value is
a. A risk lover b. Risk neutral c. Risk averse d. most likely to play a lottery
A shoe manufacturer wants to maximize its total revenue. When the manufacturer charges $25 per shoe, consumers demand 50 shoes per day. The manufacturer knows that the demand for shoes is highly elastic. In the given scenario, which of the following statements is true?
a. To maximize total revenue, the manufacturer should decrease the price of its shoes, because the percentage increase in quantity demanded will more than offset the decrease in price. b. To maximize total revenue, the manufacturer should decrease the price of its shoes, because the percentage increase in quantity demanded will not offset the decrease in price. c. To maximize total revenue, the manufacturer should increase the price of its shoes, because the increase in price will more than offset the decrease in quantity demanded. d. To maximize total revenue, the manufacturer should increase the price of its shoes, because the increase in price will not offset the decrease in quantity demanded.