A firm is making a profit under conditions of monopolistic competition if, at the equilibrium output,
a. AR is above MR.
b. MR is above AR.
c. AR is above AVC.
d. AR is above ATC.
d. AR is above ATC.
You might also like to view...
The figure above shows the housing market in the city of Appleville. A rent ceiling of $650 per month is imposed. With the rent ceiling, the quantity of housing rented in Appleville is
A) 200 units below the efficient level. B) 100 units above the efficient level. C) 300 units below the efficient level. D) efficient.
You enter a classroom, which is littered with newspapers. This is because
A) students are too lazy to clean up. B) maintenance people only clean once a day. C) it is a way to protest against the tuition rates. D) students do not pay for littering.
With the benefits of international trade:
a. there can be increased consumption for all. b. global production will be increased. c. world resources will be used more efficiently. d. all of these are true.
Saving endangered species
A. must involve the loss of another species. B. may involve a trade-off in terms of the loss of other economic activities. C. benefits all people in society without any trade-off. D. requires the government to list those species as common property.