Perfectly competitive firms will produce as long as marginal revenue exceeds marginal cost.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 4-7 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
What will be an ideal response?
What will a home monopolist prefer?
a. high quotas b. low quotas c. low tariffs d. It would like all of these equally; that is, they are equivalent.
Refer to the figure above. The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation?
Shift aggregate demand by decreasing taxes Shift aggregate demand by increasing government spending Shift aggregate demand by increasing taxes Shift aggregate supply by increasing taxes
A firm that retains earnings does the equivalent of
A. borrowing money from the firm's shareholders. B. lending money to the firm's shareholders. C. decreasing the net worth of the firm's shareholders. D. decreasing its own net worth.