Assume that price is greater than average variable cost. If a perfectly competitive firm is producing at an output where price is $114 and the marginal cost is $102, then the firm is probably producing more than its profit-maximizing quantity
Indicate whether the statement is true or false
FALSE
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In the figure above, the value on the x-axis increases as we move from
A) point G to point A. B) point C to point A. C) point F to point A. D) point E to point A.
The difference between the value of a good to consumers and its price is known as: a. demand
b. marginal utility. c. total utility. d. consumer surplus.
If a firm shuts down for a week, during that week its:
A. total variable cost exceeds total fixed cost. B. total cost is zero. C. total cost equals total variable cost. D. total cost equals total fixed cost.
Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5K0.5. Firm B's production function is q = 1.2 ? L0.5K0.5. If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL
What will be an ideal response?