If P > ATC for a perfectly competitive firm, then
a. the firm could increase profit by lowering its price
b. the firm could increase profit by raising its price
c. the firm is producing too much output
d. the firm is making a profit
e. profits are zero in the short run
D
You might also like to view...
You currently subscribe to two magazines and are trying to decide whether you should subscribe to a third. What should determine your decision, if you are rational?
a. the total cost of the magazines compared to the total satisfaction you would receive b. the total amount of satisfaction you would get from the magazines c. the enjoyment you would get from the third magazine d. the cost of the third magazine, including the time it takes to read it e. the cost of the third magazine compared to the additional enjoyment you would get from it
A corporation is liable to pay to bondholders the
a. current interest rate in the bond market. b. current yield on the particular bond. c. coupon rate on the bond. d. yield on the bond at maturity.
Consider Figure 12.3. Which of the following statements is true?
A. Both David and Becky have a dominant strategy. B. Neither David nor Becky has a dominant strategy. C. David has a dominant strategy but Becky does not. D. Becky has a dominant strategy but David does not.
All of the following are cited as factors in explaining U.S. competitiveness EXCEPT
A. the open U.S. financial system. B. economic restructuring. C. the decline of entrepreneurship. D. investments in information technology.