If price = marginal cost at the output produced by a perfectly competitive firm and the firm is earning an economic profit, then
A) marginal revenue is less than price.
B) average total cost is at a minimum.
C) total revenue equals total cost.
D) price exceeds average total cost.
Answer: D
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In the United States decisions to increase interest rates are made by the ________ and decisions to increase taxes are made by ________.
A. Congress; the Federal Reserved. B. the Federal Reserve; Congress C. Congress; Congress D. the Federal Reserve; the Federal Reserve
A point to the left of the LM curve would represent a situation in which
A) money demand is greater than money supply. B) money supply is greater than money demand. C) money demand is greater than goods demand. D) money demand is less than goods demand.
In the above figure, along which range would the demand for this good be most elastic?
A) between point a and point b B) between point c and point d C) between point d and point e D) at point e
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.