Which of the following formulas represents total profit for a perfectly competitive firm?
a. MR - MC
b. AR - ATC
c. P - ATC
d. Q ? (MR - MC)
e. Q ? (P - ATC)
E
You might also like to view...
One condition for the first welfare theorem to hold is that there are no externalities. Can this condition be re-phrased as "all property rights have been established"? And how does this justify a wide range of what we see government doing?
What will be an ideal response?
A report indicated that the average real wage in manufacturing declined by 2 percent between 1990 and 2000. If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the average nominal wage in manufacturing was $35 in 2000, what was the average nominal wage in manufacturing in 1990?
A. $21.13 B. $26.92 C. $27.47 D. $26.40
How does a company arrange to sell its products to people who are unwilling to pay the top price for them?
a) by allowing rebates to some preferred customers who buy a lot of goods b) by charging each customer the maximum amount they are willing to pay c) by charging different prices according to the group to which the buyer belongs d) by changing the product and selling a lesser one to people who are unwilling to pay for the top product
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.