Jennifer's Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110
To maximize her profit, Jennifer should A) not produce this additional batch.
B) produce this batch of cookies because they will help lower her average fixed cost.
C) charge $120 for this batch.
D) shut down.
E) produce this batch of cookies because their MR exceeds their MC.
A
You might also like to view...
List two implications of rent-seeking behavior
What will be an ideal response?
Entry into an oligopoly is
a. possible for anyone b. time consuming c. relatively easy d. impossible e. relatively difficult
According to Keynes
A. nominal wages are sticky. B. markets are perfectly competitive. C. money illusion does not exist. D. the short-run aggregate supply curve is vertical.
The federal funds rate is
A. the interest rate on bonds issued by the federal government. B. the interest rate paid on reserves held with the Fed. C. the interest rate at which banks can borrow excess reserves from other banks. D. none of these.