To maximize profits, a perfectly competitive firm should produce where marginal:
A. cost equals marginal revenue.
B. revenue exceeds marginal cost.
C. cost equals total revenue.
D. cost exceeds marginal revenue.
Answer: A
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A natural monopoly is a monopoly that arises from:
A. having an exclusive right to operate in a national park. B. a firm's natural desire to maximize its profit. C. having exclusive control over the natural resources used to produce a good. D. economies of scale.
If more and more labor is employed while keeping all other inputs constant, the marginal physical productivity of labor will eventually:
a. increase. b. decrease. c. remain constant. d. cannot tell from the information provided.
With economies of scale came
A) larger families. B) simpler business forms. C) the need for management structures beyond what a family could offer. D) fewer economies of scope.
which of the following would result in a low rating on the economic freedom of the world index
What will be an ideal response?