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).
You might also like to view...
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
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
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.
Explain how efficiency wages, labor unions, and minimum wage laws affect labor markets
What will be an ideal response?