If the firm produces at Q3, the firm:
A. will receive less profits that if it produces at Q2.
B. maximizes profits.
C. Minimizes costs.
D. will receive less profits than if it produces at Q4.
Answer: A
You might also like to view...
Both price supports and a price floor can
A) create a deadweight loss. B) decrease output below the equilibrium quantity. C) decrease the price below the equilibrium price. D) increase consumer surplus. E) have no effect on producer surplus.
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the long run
A) an increase; no change B) a decrease; no change C) an increase; an increase D) no change; a decrease
Microeconomics approaches the study of economics from the viewpoint of:
a. inflation, unemployment, and economic growth. b. the federal government. c. individual economic units, such as consumers, firms, and units of government. d. the economy as a whole.
A perfectly elastic demand curve for a firm
a. is represented by a vertical line. b. means that with every unit price increase there will be a unit decrease in demand. c. is formulated by P × Q = a constant, for all prices and quantities. d. indicates that any increase in price will eliminate all purchases of its product.