A resource-extracting firm will tend to operate where
a. Marginal revenue equals marginal cost
b. Average revenue equals average cost
c. Marginal revenue exceeds marginal cost
d. Total revenue equals total cost
e. Marginal cost exceeds marginal revenue
Ans: c. Marginal revenue exceeds marginal cost
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A perfectly competitive firm definitely makes an economic profit in the short run if price is
A) equal to marginal cost. B) equal to average total cost. C) greater than average total cost. D) greater than marginal cost. E) greater than average variable cost.
The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y. B) a change in X by one unit is associated with a 100 ?1 % change in Y. C) a 1% change in X is associated with a change in Y of 0.01 ?1. D) a change in X by one unit is associated with a ?1 change in Y.
The domestic currency of a country depreciates in value when: a. there is an increase in the foreign currency price of the domestic currency. b. its value falls in relation to another currency
c. the government of the country revaluates the domestic currency. d. its value rises in relation to another currency. e. there is a fall in the domestic demand for foreign currency.
In a partnership form of business
a. all, except one partner, are subject to limited liability b. the business must operate in at least two countries c. at least two different products must be produced d. the partner who owns the majority of stock makes all of the important managerial decisions e. profits are shared by the partners