The difference between a perfectly competitive firm's total revenue and its total cost is
A) always positive.
B) always negative.
C) always zero.
D) greatest at the profit-maximizing level of output.
D
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Consider a firm that uses labor and capital to produce output x using a homothetic production technology that has increasing returns to scale when output lies between 0 and xA, constant returns to scale when output lies between xA, and xB, and decreasing returns to scale when output exceeds xB (where 0
What will be an ideal response?
Labor is typically assumed to be the only variable input in very short-run production systems, and the number of variable inputs increases as we lengthen our planning horizon from short run to long run
What happens to the labor demand curve as we move from short run to long run? A) Demand curve becomes less elastic B) Demand curve elasticity does not change C) Demand curve becomes more elastic D) Demand curve becomes upward sloping
The game in the figure shown is a version of:
A. the prisoner's dilemma.
B. the first-mover advantage.
C. a sequential game.
D. a repeated game.
__________ flows from government to households
A) A transfer payment B) A tax payment C) The Laffer Curve D) Crowding out