Which of the following is TRUE for the perfectly competitive firm?
A) Price and MR are always equal.
B) AR is less than price.
C) AR is more than price.
D) Price elasticity of demand is equal to 1.
A
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After 1616, Virginia shifted more and more scarce resources out of food production and into tobacco production. Hence, the economic cost of tobacco production included the sacrifice of food production
Indicate whether the statement is true or false
Suppose Thelma and Louise both sell fried green tomatoes in a perfectly competitive market. If Louise increases her output,
a. Thelma must reduce output b. the price Thelma can charge falls c. the price Thelma can charge rises d. the price Thelma can charge is unaffected e. Thelma's profits must fall
Peak-load pricing suggests that some prices are a function of
A) extensions. B) time. C) costs. D) constant elasticities.
By definition, a firm that practices satisficing
a. maximizes its sales, not its profits. b. makes acceptable decisions, though not necessarily optimal ones. c. satisfies government guidelines instead of consumer demands. d. minimizes the cost of gathering enough information to make an optimal decision.