A perfectly competitive firm trying to maximize profits in the short run will expand output
A. until total revenue equals total cost.
B. until marginal cost equals average variable cost.
C. until marginal cost begins to rise.
D. as long as marginal revenue is greater than marginal cost.
Answer: D
You might also like to view...
A direct relationship is expressed graphically as a:
a. positively sloped line or curve. b. negatively sloped line or curve. c. horizontal line. d. vertical line.
Between 2009 and 2013:
a. both the actual and the structural deficit fell substantially. b. both the actual and the structural deficit rose subtantially. c. the actual deficit rose, while the structural deficit fell substantially. d. the structural deficit rose, while the actual deficit fell substantially.
How does a tax cut affect the expenditure schedule?
a. It causes movement to the left along the schedule. b. It causes the schedule to shift upward. c. It causes movement to the right along the schedule. d. It causes the schedule to shift downward.
Refer to Figure 9.1. At what price and quantity combination is profit maximized?
A. Q = 50; P = $5
B. Q = 50; P = $15
C. Q = 85; P = $10
D. Q = 85; P = $15