A firm earns a profit of exactly zero at its optimal output level only if
a. P = MR.
b. P = MC.
c. P = AC.
d. P = SR AVC.
c
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The argument that calls for the trade protection of only newly developing industries is known as the ________ argument
A) predatory dumping B) developing nation C) infant industry D) learning by doing
Refer to Scenario 9.1. The dominant strategy for Sheb is to place ________ sheep on the commons
A) 4 B) 5 C) Sheb's dominant strategy depends on how man sheep Monty places on the commons. D) Sheb has no dominant strategy.
The demand for gasoline in the short run is
A) elastic because people can easily switch to public transportation. B) inelastic because there are very few good substitutes for gasoline. C) perfectly inelastic because people have no choice but to buy gasoline. D) unit elastic because people tend to consume a stable amount of gasoline per period.
Refer to Figure 24-2. Ceteris paribus, an increase in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.