If at the profit maximizing level of output, the AR curve lies below the ATC curve in the short run, the firm is earning positive economic profit
a. True
b. False
Indicate whether the statement is true or false
False
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The slope of the linear consumption function represents autonomous consumption expenditures
Indicate whether the statement is true or false
Prior to health care reform, young people would pay approximately ____ of the premium it would cost an elderly person
a. 1/6 b. 1/2 c. 2/3 d. 4/5
Perfect price discrimination is when a firm can charge each customer exactly what they are willing to pay.
Answer the following statement(s) true (T) or false (F)
What is the equilibrium quantity of a market with a demand curve P = 10 - Q and a supply curve equal to P = 2 + 2Q and a tax imposed on the seller of $2 per unit? How does this tax effect resource allocation? What might justify the allocation effect of the tax?
What will be an ideal response?