A perfectly competitive firm is producing more than the profit-maximizing amount of its product. You can conclude that its
A) total cost exceeds its total revenue.
B) average total cost exceeds the price of the product.
C) marginal revenue is less than the price of the product.
D) marginal cost exceeds the price of the product.
D
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Historically, the U.S. government has been used to overcome crises, redistribute income and wealth and address negatively received market outcomes
Indicate whether the statement is true or false
An efficient tax is one that raises the desired tax revenue but creates the least possible
a. total burden. b. excess burden. c. tax incidence. d. tax shifting.
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $30 million. In response, consumption falls by $8 million. If GDP and government spending remains the same and Alpetra is a closed economy, what is the change in investment?
a. Investment increases by $8 million. b. Investment decreases by $8 million. c. Investment increases by $38 million. d. Investment decreases by $22 million.
Ceteris paribus, the demand curve for a good will shift to the right in response to:
A. A decrease in income. B. An increase in the costs of production. C. An increase in tastes or preferences for the good. D. A higher price for the good.