A firm's profit equals:
A. (P ? ATC) ÷ Q [(price minus average total cost) divided by the quantity sold].
B. (P ? ATC) × Q [(price minus average total cost) times the quantity sold].
C. P ? MC [price minus marginal cost].
D. P × Q [price times the quantity sold].
Answer: B
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The order of the steps in the accounting cycle includes:
a. Adjusted trial balance, financial reports, adjusting entries, trial balance b. Adjusted trial balance, adjusting entries, financial reports, trial balance c. Trial balance, adjusting entries, adjusted trial balance, financial reports d. Trial balance, financial reports, adjusting entries, adjusted trial balance
A firm in a perfectly competitive market:
A. must take the price that is determined in the market. B. must reduce its price if it wants to sell a larger quantity. C. must be large relative to the total market. D. can exert a major influence on the market price.
An increase in the productivity of a factor of production will
A. shift its marginal revenue product curve to the left. B. cause a firm to move up the marginal revenue product curve. C. cause a firm to move down the marginal revenue product curve. D. shift its marginal revenue product curve to the right.
Draw a profit/price trade-off curve that is the result of moving from a competitive to a monopoly industry organization. Show the equilibrium position for the regulator with a political support function (PS curve). What can we say about prices and profits of the regulated industry if it started as a competitive industry?
What will be an ideal response?