For a firm in perfect competition, a diagram shows quantity on the horizontal axis and both the firm's marginal cost (MC) and its marginal revenue (MR) on the vertical axis. The firm's profit-maximizing quantity occurs at the point where the
A) slope of the MC curve is zero.
B) MC and MR curves are parallel.
C) MC curve intersects the MR curve from below, going from left to right.
D) MC curve intersects the MR curve from above, going from left to right.
C
You might also like to view...
Suppose a monopolist faces the following demand curve.
The monopolist maximizes its profits by:
A. producing 35 units, since this is where total revenue is maximized. B. producing the level of output at which marginal revenue equals marginal cost. C. producing the level of output at which marginal revenue minus marginal cost is greatest. D. charging $70 for each unit.
Who participates in markets?
A. Business firms and consumers. B. Business firms. C. Consumers and government agencies. D. All of the choices are correct.
To fight unemployment and close a recessionary gap, the Fed ______
A. stimulates aggregate demand by lowering the federal funds rate, which increases the quantity of money B. stimulates aggregate supply by lowering the federal funds rate, which increases potential GDP C. increase employment, which increases real GDP D. increases bank reserves, which banks use to make new loans to busi-nesses, which increases aggregate supply
The closest thing in the real world to a negative income tax is the _____
a. AARP b. EITC c. TANF d. AFDC