Figure 9-1 shows the marginal cost and average total cost curves for a perfectly competitive firm. If the market price is $10, and the firm produces more than 200
a.
the firm earns less profit per unit than if it produced 200 but more total profit.
b.
the firm earns more profit per unit than if it produced 200 and more total profit.
c.
the firm earns less profit per unit than if it produced 200 and less total profit.
d.
the firm earns more profit per unit than if it produced 200 but may make a loss.
e.
the firm will instantly go from making a profit to making a loss
c
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The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals
A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.
Which of the following is not an important objective of development?
a. increases in per capita income b. the expansion of available choices c. increases in individual and national self-esteem d. all of the above are important objectives of development
The most important determinant of the elasticity of supply is
A) whether the good is a durable good or a nondurable good. B) the price of the good. C) the time period firms have to adjust to the new price. D) the proportion of the good in the budget of consumers.
In a simplified banking system, the money multiplier falls as the required reserve ratio decreases
a. True b. False Indicate whether the statement is true or false