The best that this firm in the above graph can do is
A. maximize profits.
B. break-even.
C. minimize profits.
D. make a small profit.
A. maximize profits.
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What are the two important properties of all models?
What will be an ideal response?
Some policymakers have argued that products like cigarettes, alcohol, and sweetened soda generate negative externalities in consumption. If the government decided to impose a tax on soda, the government will cause
A) producers to internalize the externality. B) the external cost to drinking soda to become a private cost paid by the government. C) consumers to internalize the externality. D) the external cost to drinking soda to become a private cost paid by producers.
According to the law of diminishing returns
A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above
The short-run market supply curve is
a. the horizontal summation of each firm's short-run supply curve. b. the vertical summation of each firm's short-run supply curve. c. the horizontal summation of each firm's short-run average cost curve. d. the vertical summation of each firm's short-run average cost curve.