Which of the following statements is correct?
A. If the profit-maximizing rule is fulfilled, it necessarily follows that the cost-minimization rule
is being fulfilled.
B. The profit-maximizing and the cost-minimizing rules are such that the fulfilling of one has
no bearing on the fulfilling of the other.
C. If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not be
fulfilled.
D. If the cost-minimization rule is fulfilled, it necessarily follows that the profit-maximizing rule
is being fulfilled.
Answer: A
You might also like to view...
The discretionary change of government expenditures or taxes to achieve national economic goals is
A) a direct expenditure upset. B) fiscal policy. C) Ricardian-equivalence theorem. D) supply-side economics.
Assume a monopolistically competitive firm comes up with a new innovation that allows it to earn above-normal economic profits
Given the nature of the market in which it operates, over time those profits will be competed away as new competitors enter the market. Indicate whether the statement is true or false
Transferable pollution rights allow a given level of pollution reduction to be achieved: a. at zero cost
b. at higher cost than compliance standards. c. at lower cost than compliance standards. d. at higher cost than a system of pollution taxes.
Consider a market for coffee that is initially in equilibrium. If tea harvest is bad in a particular year, then identify the most likely impact on the equilibrium price and quantity of coffee.
a. ?The price of coffee will decrease while the quantity of coffee will increase. b. ?There will be no impact on the equilibrium price and quantity of coffee. c. ?The price of coffee will increase, while the quantity of coffee will decrease. d. ?Both the price and the quantity of coffee will increase. e. ?Both the price and the quantity of coffee will decrease