In a perfectly competitive market, if the market price is less than ATC, and the market price equals the MC, then the firm should:
A.) Result in an increase in profits
B.) Result in a loss of income
C.) Result in a growth of the industry
D.) Result in more sellers entering the market
C.) Result in a growth of the industry
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A lender of last resort
A) makes loans when no one else will. B) makes loans without regard for risk. C) is a firm that is forced to make loans for its own survival. D) Both A and B. E) None of the above.
Which of the following is the growth rate of the standard of living?
A) y - q B) y - n C) y - a D) y - b
How do high rates of inflation lead to an increased frequency of cash withdrawals from an ATM or a bank?
Suppose the accompanying table describes the relationship between price and quantity demanded for a monopolist. QuantityPrice1$102$93$84$75$66$57$48$3If the marginal cost of producing each unit of output is $5, then the socially optimal level of output is ________.
A. 4 units B. 7 units C. 3 units D. 6 units