Using the above figure, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
A. P1.
B. P2.
C. P3.
D. P4.
Answer: D
You might also like to view...
The expected value is
A) the total of all possible outcomes. B) the arithmetic average of all possible outcomes. C) the average of all possible outcomes weighted by their respective probabilities. D) the total of all possible outcomes divided by the number of different possible outcomes.
Use the following statements to answer this question
I. To maximize profit, a firm will increase its advertising expenditures until the last dollar of advertising generates an additional dollar of revenue. II. The full marginal cost of advertising is the sum of the dollar spent directly on advertising and the marginal production cost that results form the increased sales that advertising brings about. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Which statement is true?
A. The federal government collects much more in direct taxes than in indirect taxes. B. The federal government collects much more in indirect taxes than in direct taxes. C. The federal government collects the same amount in direct taxes as in indirect taxes.
If marginal product is negative, then
A) total product is rising. B) total product is falling. C) marginal cost is falling. D) average profit is rising.