Which statement is true?
A. Price is calculated by dividing output by total revenue.
B. The lowest point on the short-run supply curve is at the break-even point.
C. When price exceeds marginal cost, a profit-maximizing firm will decrease production.
D. The marginal cost curve intersects the average total cost curve at the break-even point.
D. The marginal cost curve intersects the average total cost curve at the break-even point.
You might also like to view...
DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service
For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing service? A) yes, but only if he raises the price of the basic detailing package B) No, his marginal benefit is less than his marginal cost. C) Yes, he still makes a profit by selling the engine detailing service with the basic detailing package. D) More information is needed for DeShawn to make this decision.
An isoquant shows
A) the combinations of two inputs that yield the same total product. B) the combinations of two inputs that cost the same total quantity of money. C) the combinations of two goods that yield the same total satisfaction. D) the combination of two goods that cost the same amount of money.
The U.S. economy is not a perfectly competitive market. There are costs associated with negotiating contracts, enforcing agreements, taxes and less than perfectly competitive firms. Nevertheless, according to Wallis and North (1986), the U.S
economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP between 1890 and 1970. Indicate whether the statement is true or false
If price is cut and demand is inelastic, then
A) total revenue will fall. B) total revenue will not change. C) quantity demanded will fall D) total revenue will rise.