Refer to the above table. If the firm can produce 24 units at a price of $1.00, 42 units at a price of $0.80, and 54 units at a price of $0.60, then the firm is:
A. Selling in a purely competitive market
B. Selling in an imperfectly competitive market
C. Minimizing its costs at a product price of $1.00
D. Maximizing profits at a product price of $0.60
B. Selling in an imperfectly competitive market
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Which of the following is a tool that is used by the Fed to control the quantity of money?
A) open market operations B) excess reserves C) government expenditure multiplier D) real interest rate
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) produce a combination of goods that lies outside its own production possibilities frontier. C) consume a combination of goods that lies outside its own production possibilities frontier. D) increase the variety of products that it can consume with no increase in resources.
Along the portion of the consumption function that lies above the 45-degree line, saving is
A) positive. B) negative. C) equal to zero. D) equal to consumption.
Absolute advantage is based on opportunity cost
a. True b. False