Firms in perfectly competitive markets who wish to maximize profits should produce where:

A. marginal revenue and marginal cost are equal.
B. marginal revenue and market price are equal.
C. marginal revenue and average revenue are equal.
D. marginal cost and average cost are equal.


D. marginal cost and average cost are equal.

Economics

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The real interest rate is the rate at which borrowers or lenders ________ to make transactions when issuing or receiving loans

A) are required B) refuse C) expect D) can only obtain from a financial intermediary

Economics

If savers do not have fixed savings goals, the supply curve of loanable funds will generally be

A. horizontal. B. downward sloping. C. vertical. D. upward sloping.

Economics

Why do you hold money? According to the classical economists, the only motivation you have for holding money is for

a. transactions purposes b. precautionary purposes c. speculative purposes d. savings purposes e. liquidity purposes

Economics

Table 21.1Units of LaborUnits of Output00115235345452What is the marginal physical product of the second unit of labor in Table 21.1?

A. 17. B. 35. C. 5. D. 20.

Economics