A perfectly competitive firm will maximize profits (or minimize losses) so long as price (marginal revenue) is:
A) greater than marginal cost.
B) greater than average fixed cost.
C) greater than average total cost.
D) greater than average variable cost.
D
You might also like to view...
Which of the following would not affect this year's GDP?
a. the paint you purchased when painting your house b. the new car your parents purchased and gave to you as a birthday present c. a Gateway computer purchased by the U.S. government d. the value of a used car you purchased, at its sale price
Regulatory capture exists when
A. regulated firms form special interests and influence politicians who appoint regulators through campaign donations. B. regulated firms pay for favorable public media campaigns. C. the federal government successfully deregulates an industry. D. two or more firms merge to gain a majority market share.
In most microeconomic models, a decision maker
A) maximizes an objective subject to a constraint. B) faces no constraints. C) has no clearly defined objective. D) B and C
If the U.S. dollar price of the New Zealand dollar (NZD) is $0.5709, then the NZD price of one U.S. dollar will be:
a. 1.5709 NZD. b. 1.75 NZD. c. 1.6711 NZD. d. 0.5709 NZD. e. 1.75 NZD.