In the short run, the profit maximizing (or minimizing) quantity of output for any firm to produce exists at that output level at which marginal revenue equals marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost, the difference between the wholesale demand curve and the consumer retail demand curve is the ________.
A) average fixed cost of distribution B) marginal revenue of production C) marginal cost of production D) marginal cost of distribution
The elasticity of demand for salt is: a. highly elastic
b. highly inelastic. c. equal to zero. d. infinitely elastic.
Suppose option A has a higher variance than option B. Which of the following statements is, in general, true?
A. A risk-neutral person is indifferent between options A and B. B. A risk-averse person prefers option B to option A. C. A risk-averse person prefers option A to option B. D. There is insufficient information to determine which is true.