The goal of the perfectly competitive firm is to
A) maximize total revenue.
B) maximize total profits.
C) minimize AFC.
D) minimize ATC.
B
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Under perfect capital mobility, an increase in world interest rates will
a. increase income and reduce domestic interest rates. b. increase income. c. increase income and lead to a balance of payment deficit. d. increase income and lead to a balance of payment surplus.
Monetarists believe that to promote long-term economic growth, national governments should:
a. Increase government spending and reduce taxes. b. Reduce government spending and increase taxes. c. Promote research and development with federal funds. d. Impose tariffs and quotas until the nation is on its feet. e. Create stable and predictable political environments and encourage competitive markets.
Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at $600, but then the college expanded enrollment from 10,000 to 12,000, and suddenly there was a shortage of rental housing at the prevailing price of $600 . Which of the following is most likely to be true?
a. The shortage occurred because supply increased, and a new market equilibrium will feature lower rental prices and fewer rental units available on the market. b. The shortage occurred because demand increased, and a new market equilibrium will feature higher rental prices and fewer rental units available on the market. c. The shortage occurred because demand decreased, and a new market equilibrium will feature lower rental prices and fewer rental units available on the market. d. The shortage occurred because demand increased, and a new market equilibrium will feature higher rental prices and more rental units available on the market.
Figure 4-25
Refer to . The price that buyers pay after the tax is imposed is
a.
P1.
b.
P2.
c.
P3.
d.
impossible to determine from the figure.