Consider a firm with the following cost information: ATC = $15, AVC = $12, and MC = $14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is:
a. $12.
b. $14.
c. $15.
d. $20.
b
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According to the above figure, at an income level of Y1,
A) the economy saves an amount equal to BD. B) the economy dissaves an amount equal to BD. C) the average propensity to save is greater than one. D) the marginal propensity to save is falling.
In a sequential game, if Irene decides to enter the market, what would be Mattie's best response?
a. Accommodate b. Fight c. Run away d. Shut down
A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward b. is too high c. creates an excess demand that will force price upward d. is too low e. is higher than the market price
The wages and salaries that people earn differ partly because of differences in:
A. Wealth B. Ability C. Social Security payments D. In-kind transfer payments