A perfectly competitive firm that should not shut down in the short run will maximize profit where
a. VC = 0
b. FC = 0
c. AFC = MC
d. P = MC
e. ATC = 0
D
You might also like to view...
Which of the following is true?
i. A price ceiling set below the equilibrium price decreases search activity. ii. A minimum wage is an example of a price ceiling. iii. A price support decreases the quantity consumed. A) only i B) only ii C) only iii D) i and iii E) ii and iii
The cost of owning a government bond is ____________, and the benefit of owning one is ______________.
A. that it is as liquid as cash; interest earned B. interest earned; that it is not very liquid C. that it is highly liquid;interest charged D. interest charged; that it is not very liquid
Assume fixed costs are 470 and labor costs $20 per unit. The first laborer produces 20 units of output. Subsequent hires add 5 units less to production than the previous worker. Thus the second worker adds 15, the third adds 10 etc. Which of the following is a true statement?
A. Average fixed cost is 10 when output is 45. B. Marginal cost keeps falling as the number of laborers hired increases. C. At an output of 20 the total cost is $20. D. Average total cost at an output of 50 is 11.
Money has replaced the need to barter, which is:
A. something you can directly offer, like any good or service, in exchange for some good or service you want. B. something you can use to purchase goods and services. C. a certain amount of purchasing power that it retains over time. D. a standard unit of comparison.