Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. Among the other relationships you consider is (P – ATC) which measures the firm's
a. total profit
b. profit per unit of output
c. marginal profit
d. total revenue
e. average variable cost
B
You might also like to view...
Vickery auctions are
a. Oral auctions b. Second price sealed bid auctions c. English auctions d. None of the above
Compared to a perfect competitor, the colluding oligopolist
A. charges a higher price. B. has a higher ATC and is therefore less efficient. C. restricts output. D. All of the choices are correct.
A decrease in supply will occur when
A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.
If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from
A) 23.3 years to 17.5 years. B) 28.0 years to 21.0 years. C) 11.2 years to 10.8 years. D) 23.3 years to 20.6 years.