What decisions must a firm make to maximize profit?
What will be an ideal response?
The firm has three decisions it must make. First it must determine how to produce at the minimum cost. Then it must determine how much to produce. Finally it must decide whether to enter or exit a market.
You might also like to view...
If MUa/Pa is greater than MUb/Pb, and the consumer is consuming both goods, the consumer is not maximizing utility. True or false. Explain
What will be an ideal response?
The short-run equilibrium of the firm under monopolistic competition has excess capacity
a. True b. False Indicate whether the statement is true or false
If an individual requires a bag full of cash to buy a pound of cake, then the currency is: a. not recognized as a medium of exchange. b. not performing well as a store of value. c. not performing as a unit of account
d. performing well as a commodity.
Suppose James and Katherine are successful in establishing a profitable market for their "ghost restaurants" in what is a monopolistically competitive industry. In the long run, James and Katherine will most likely find it ________ to remain profitable
as they face ________ competition in the "ghost restaurant" market. A) harder; more B) harder; less C) easier; more D) easier; less