If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p > MC
B) MR > MC
C) p ? AVC
D) All of the above.
C
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Why is it difficult for economists to predict the price and output policy that will emerge in oligopolistic markets?
a. Economists cannot determine if barriers to entry exist in a market. b. Economists cannot predict the reactions that firms will have to the actions and decisions of other firms. c. The government prevents economists from acquiring the information that would lead to good predictions. d. Firms have a set price and output policy, but the policy is concealed to discourage competition.
One major difference between a debit and credit card is:
A. credit cards are money and the debit card is not. B. debit cards charge late fees. C. you have to pay interest on your purchases if you use a credit card. D. you can build a credit history with the credit card but not with the debit card.
Recall the Application about the attempt to form a salt cartel in the 19th century to answer the following question(s).According to the Application, what was the objective of firms when they created salt pools?
A. To decrease competition and keep prices uniformly high. B. To decrease competition and keep prices uniformly low. C. To lobby the state governments to prevent salt from other states to enter. D. To give support to financially troubled salt mines.
The marginal cost curve intersects the ________ at its minimum.
A. average variable cost curve B. average total cost curve C. average fixed cost curve D. A and B are both correct.