A perfectly competitive furniture-rental firm in Phoenix incurs an economic loss if the average total cost of each rental is
A) greater than the marginal revenue of each rental.
B) less than the marginal revenue of each rental.
C) equal to the marginal revenue of each rental.
D) equal to the price of each rental.
E) greater than the average variable cost of each rental.
A
You might also like to view...
If the marginal propensity to save is equal to 0.5 in the simple Keynesian model, then a 10-unit increase in government spending will cause output to rise by
a. 5 units. b. 10 units. c. 20 units. d. 25 units. e. 40 units.
In the Keynesian-cross model, a decrease in the interest rate ______ planned investment spending and ______ the equilibrium level of income.
Fill in the blank(s) with the appropriate word(s).
If there were no barriers to entry:
A. patents could still be offered by the government. B. firms would compete away monopoly profits. C. "just" monopolies would still exist. D. natural monopolies would still exist.
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle's budget is AC. At which point does Mr. Lingle spend exactly his income?
A. A. B. D. C. E. D. The answer cannot be determined with the given information.