The profit maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is
A) P = MC only.
B) MRP = wage only.
C) Both A and B.
D) Neither A nor B.
C
You might also like to view...
Which of the following is true if the price of coffee increases?
a. The demand for tea, a substitute good, will decrease. b. The demand for coffee will increase. c. The demand for coffee and tea will decrease. d. Both the demand for coffee and tea will increase. e. The demand for tea, a substitute good, will increase.
Total surplus is
A. the sum of consumer’s surplus plus producer’s surplus. B. the consumer’s surplus minus the producer’s surplus. C. the product price minus the sum of consumer’s surplus and producer’s surplus. D. consumer surplus minus marginal utility of the produce.
According to the law of comparative advantage, individuals and economies should specialize in producing those goods and services in which they have a comparative advantage
a. True b. False
In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as
a. there is no output effect. b. there is no price effect. c. the output effect is larger than the price effect. d. the price effect is larger than the output effect.