As long as it does not shut down, a perfectly competitive firm earns the maximum profit as long as it operates so that
A) its price exceeds its average total cost.
B) market demand is inelastic.
C) its price exceeds its marginal revenue.
D) its marginal revenue equals its marginal cost.
D
You might also like to view...
The relative amounts of the goods that will be exchanged for each other in trade refers to the nations'
A) autarky status. B) absolute advantages. C) terms of trade. D) production possibilities.
Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
A firm engaging in rent seeking activity
A) is breaking the law. B) is willing to spend up to the gain in producer surplus. C) is irrational. D) increases societal gain.
Comparing an option to a futures contract it would be correct to say:
A. an option contract carries more risk than the futures contract. B. the risk involved in each is equal. C. a futures contract carries more risk than the option contract. D. neither involves risk; they are tools to eliminate risk.