At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost. Which of the following is also true?
A) The difference between total revenue and total cost is the greatest.
B) Total revenue equals total cost.
C) Average revenue equals average total cost.
D) Marginal profit equals marginal cost.
Answer: A
You might also like to view...
In monopolistically competitive markets
A) price is greater than it would be in perfect competition. B) price is less than it would be in perfect monopoly. C) quantity is greater than it would be in perfect monopoly. D) All of the above.
Regulation of a firm in a monopolistically competitive market
a. usually implies a very small administrative burden. b. will lower the firm's costs. c. is commonly used to enhance market efficiency. d. is unlikely to improve market efficiency.
Reserves are:
A. assets and liabilities for the central bank. B. assets of the commercial banks and liabilities of the central bank. C. assets of the central bank and liabilities of the commercial bank. D. liabilities of the commercial and central banks.
Under China's current regime of fixed exchange rates and capital mobility, the main concern is domestic
A. unemployment B. inflation C. depreciation D. liquidation