A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Individual firms in perfectly competitive industries are price takers because
A) the government sets all prices. B) buyers set prices. C) firms decide together on the best price to charge. D) each individual firm is too small to affect the market price.
Progressive taxation serves which of the following goals of economic welfare policy?
A. Social insurance B. Economic growth C. Progressive taxation has all of these goals aimed at reducing inequality. D. Redistribution of wealth
A cost which has been incurred and cannot be recovered is called a:
a. Opportunity Cost b. Monetary Cost c. Variable Cost d. Sunk Cost
Money is destroyed when
A. a bank gives you a $1,000 loan. B. you pay back a $1,000 loan to a bank. C. you deposit $1,000 cash to be deposited in your checking account. D. you cash a check for $1,000 at your bank.