If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC
B) MR = MC
C) p ? AVC
D) All of the above
D
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If the wage rate is $10 per hour and one worker can currently produce 2 units of output per hour, then the marginal cost of production is
a. $5 b. $10 c. $20 d. the answer cannot be determined from the information given.
A consumer's budget refers to the:
A) wealth she has acquired over time. B) prices of the goods she buys. C) amount of money she can spend on various goods and services. D) difference between the consumer's income and expenditure.
What assumptions are necessary for a market to be perfectly competitive? Explain why each of these assumptions is important
What will be an ideal response?
The Uruguay Round of GATT negotiations completed in late 1993:
A. established a free trade zone between the United States and Mexico. B. made the Russian ruble convertible into other currencies. C. created the European Union (EU). D. created international protections for intellectual property such as patents, copyrights, and trademarks.