The profit-maximizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR is at a maximum.
B) TR - TC is at a minimum.
C) MR = MC.
D) TR - ATC is at a maximum.
C
You might also like to view...
Well-functioning financial markets
A) cause inflation. B) eliminate the need for indirect finance. C) cause financial crises. D) allow the economy to operate more efficiently.
The idea that supply creates its own demand is known as
A) the law of supply. B) the law of demand. C) Keynes' law. D) Say's law.
International trade under a floating exchange rate system
A. has been trouble-free owing to the stabilizing role of speculators in the currency markets. B. has suffered from so many problems that the volume of trade has declined significantly. C. exposes businesses to unavoidable risks when exchange rates change. D. has been subject to wild runs on currencies that were on the verge of devaluation.
Which of the following would likely increase the money supply?
a. The purchase of government securities by one bank from another bank b. An increase in the required reserve ratio c. An increase in the reserves of a commercial bank d. An increase in the discount rate e. The sale of government securities by a bank to the Fed