Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70 . What would you advise Mr. Raiman to do?
a. shut down the business
b. produce more custom-made shoes
c. decrease the price
d. produce fewer custom-made shoes
d
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Of the different types of businesses, a ________ has the most government rules and the most government regulations affecting it
A) sole proprietorship B) corporation C) partnership D) All of the above are subject to the same amount of rules and regulations.
If average variable cost exceeds price for a perfectly competitive firm in the short run, then it could increase profits by raising its price
a. True b. False
A worker can always build a chair in four hours. If a chair sells for $40 in a perfectly competitive market, then the equilibrium wage per hour in a perfectly competitive labor market is
a. $4. b. $10. c. $40. d. $160.
Refer to the graph below. All data are for the short run. The firm represented in this diagram is selling under conditions of:
A. Pure monopoly
B. Pure competition
C. Monopolistic competition
D. Oligopoly