To maximize expected profit, a perfectly competitive firm with a random marginal cost and known demand should produce at the level that sets ________ equal to ________.
A) marginal cost; marginal revenue
B) expected marginal cost; marginal revenue
C) expected marginal cost; expected marginal revenue
D) marginal cost; expected marginal revenue
B) expected marginal cost; marginal revenue
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In the above figure, what is the marginal social benefit of the four-hundredth pretzel?
A) $0 B) $2.00 C) $3.00 D) $4.00
Taiwan and South Korea are examples of developing nations that have recently pursued these industrialization policies
A) import substitution. B) export promotion. C) commercial dumping. D) multilateral contract. E) trade embargoes.
In order for "limit pricing" to be effective, the firm practicing such a strategy must be able to charge a price that is:
A) lower than the potential entrant's ATC but greater than the firm's own ATC. B) greater than the potential entrant's ATC but lower than the firm's own ATC. C) lower than the potential entrant's ATC but greater than the firm's own AVC. D) greater than the potential entrant's ATC but lower than the firm's own AVC.
A decrease in the price level in an economy implies that _____
a. the spending multiplier will be equal to the marginal propensity to consume b. there will be an increase in investment c. there will be a decrease in investment d. the value of the spending multiplier will be equal to one e. the value of the spending multiplier will be equal to zero