In order to maximize profit, a perfectly competitive firm should select the level of output where
a. marginal revenue equals price
b. marginal cost equals marginal revenue
c. price exceeds marginal cost
d. price exceeds marginal revenue
e. total revenue equals total cost
B
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 30,000 units
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently high. B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000. C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
Examples of Fed actions that could decrease money supply are making open market
a. purchases, increasing the required reserve ratio, and increasing the discount rate b. sales, decreasing the required reserve ratio, and increasing the discount rate c. sales, increasing the required reserve ratio, and decreasing the discount rate d. sales, increasing the required reserve ratio, and increasing the discount rate e. purchases, decreasing the required reserve ratio, and decreasing the discount rate
A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B
a. The company likely needs to pay workers in location A more. b. The company likely needs to pay workers in location B more. c. It's not clear if the company would need to pay more to workers in location A or location B. d. The company must pay workers the same amount.
Which of the following policies supports the concept of continual adjustment of the money supply to achieve macroeconomic goals?
A. Restrictive policy. B. Fixed rules. C. Discretionary policy D. Fiscal policy.