Firms operating in competitive markets produce output levels where marginal revenue equals
a. price.
b. average revenue.
c. total revenue divided by output.
d. All of the above are correct.
d
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According to your authors, the prohibition on alcohol kept the ________ curve relatively stable while the ________ curve became more ________
A) supply; demand; elastic B) supply; demand; inelastic C) demand; supply; elastic D) demand; supply; inelastic
A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5 . The firm can sell the unit for $6 . The firm should produce more than 100 units in order to maximize its profits (or minimize its losses)
a. True b. False Indicate whether the statement is true or false
Suppose that a consumer has a health insurance program with $10 co-payment per doctor visit. If the consumer purchases 6 doctor visits and the bill charged by the doctor for 6 visits is $360, the cost per visit paid by a third party is:
A. $40. B. $70. C. $60. D. $50.
If Tie-Dyed T-Shirts is currently employing labor so that the wage is greater than the marginal revenue product of labor, it must also be true that
A. the price of the product must be greater than marginal cost. B. the price of the product must be less than marginal cost. C. total revenues would be less than total costs. D. the wage is less than marginal cost.