The perfectly competitive firm maximizes profits when
A) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest.
B) it produces and sells the quantity at which marginal revenue and marginal cost are equal.
C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest.
D) it produces and sells the quantity at which the difference between price and average cost is the greatest.
B
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After graduating from college, Jim had two choices. He can either move to Florida, from Philadelphia, where he can work as an analyst and earn $60,000 or he can stay in Philadelphia and work in a car dealership earning $59,000 . His opportunity cost of moving to Florida includes
a. The benefits he could have received from playing soccer b. $59,000 c. both a and b d. none of the above
One concern of feminist empiricists is the way population control can restrict the reproductive rights and health of women. The world's most glaring example of this is the
a. opposition to same-sex marriage. b. widespread lack of contraceptives. c. "one child" policy. d. illegalization of late-term abortion.
When a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost,
a. the firm must be earning a positive economic profit. b. the firm may be incurring economic losses c. there is a deadweight loss to society, but it is exactly offset by the benefit of excess capacity. d. new firms will enter the market in the long run.
Monopolistically competitive firms can achieve product differentiation through:
A. creating a product that cannot be easily substituted with a rival's product. B. creating a truly different product. C. creating the perception of differences in their product. D. All of these statements are true.