Figure 9-17 shows that for this perfectly competitive firm, the profit-maximizing output level is
a. 0. b. 25. c. 75. d. 200.
Answer: d
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Accounting costs
A) are historical costs. B) are replacements costs. C) usually include implicit costs. D) usually include normal profits.
At the point where diminishing marginal returns set in, the slope of the total product curve is
a. positive and increasing b. positive and decreasing c. negative and increasing d. negative and decreasing e. constant
To promote economic efficiency, government should
A. keep all prices as low as possible. B. keep all prices high so that people will save more money. C. allow the market to set low prices for abundant goods and high prices for scarce goods. D. never interfere with firms’ price setting powers.
Figure 5-16
In Figure 5-16, Adam is
a.
better off at C than at D and able to afford either C or D.
b.
better off at D than at C but only able to afford C.
c.
equally well off at C and D and able to afford either C or D.
d.
equally well off at C and D but only able to afford C.