A perfectly competitive firm can be identified by the fact that
A. its average revenue equals its marginal revenue.
B. it experiences diminishing marginal returns.
C. it is making only accounting profits in the short run.
D. there are other firms in the industry producing similar products.
Answer: A
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When Javier's income increases by $5,000, he spends an additional $3,750 dollars. This implies that his marginal propensity to consume is 0.75
Indicate whether the statement is true or false
If banks faced a 100 percent reserve requirement, the money multiplier would be: a. 0.1
b. 1.0. c. 10. d. 100.
The institution charged with creating and regulating the U.S. money supply is the
a. U.S. Treasury b. Federal Reserve System c. Department of Commerce d. Department of Weights and Measures e. U.S. Mint
The basic concern of economics is to:
A) keep business firms from losing money. B) prove that capitalism is better than socialism. C) study the choices people make. D) use unlimited resources to produce goods and services to satisfy limited wants.