A firm can maximize profits in the short run by producing output where
a. MC = MR and the MC curve crosses the MR curve from above (as long as P>AVC)
b. TC = TR
c. MR - MC = TR - TC
d. MC = MR and the MC curve crosses the MR curve from below (as long as P>AVC)
e. TR = TC and the TC curve crosses the TR curve from below
D
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In long-run equilibrium after a permanent money-supply increase there follows:
A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) an unchanged exchange rate, E.
A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers
A) an increase in wealth; an increase in wealth B) an increase in wealth; a decrease in wealth C) a decrease in wealth; an increase in wealth D) a decrease in wealth; a decrease in wealth
A product would be more demand price elastic:
a. the shorter the time the consumer has to adjust to price changes. b. the lower the price of the good. c. the fewer the number of good substitutes. d. the less the essential nature of the good. e. if the supply is more price elastic.
George is a kitchen designer at Home Depot. What might cause George's supply curve of labor to shift to the left?
a. Kitchen prices decrease due to a decrease in the cost of lumber. b. George wins the lottery. c. The wage rate George gets increases. d. The wage rate George gets decreases. e. George's MRP increases after he takes computer classes.