If a firm sets marginal revenue equal to marginal cost it will make an economic profit

Indicate whether the statement is true or false


False . When a firm sets MR = MC it maximizes profits but the profit-maximizing level of output might still be negative (the smallest loss possible).

Economics

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Refer to the scenario above. Which of the following problems is likely to occur in this market?

A) The fallacy of composition B) Moral hazard C) Adverse selection D) The free-rider problem

Economics

When the unemployment rate is ________ the natural unemployment rate, real GDP is ________

A) above; increasing B) above; above potential GDP C) below; above potential GDP D) below; increasing E) equal to; either equal to potential GDP or above potential GDP

Economics

An example of an institutional requirement for the operation of effective private markets is

(a) enforcement of contracts. (b) the ability of government to correctly project trends. (c) the ability of advertisers to influence consumers. (d) all of the above.

Economics

Explain how efficiency wages, labor unions, and minimum wage laws affect labor markets

What will be an ideal response?

Economics