When a firm's profit maximizing sales level is positive, its marginal revenue is ______ its marginal cost at that quantity.
A. greater than
B. less than
C. equal to
D. less than or equal to
C. equal to
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What is search activity and how does it influence consumer surplus when a rent ceiling creates a housing shortage?
What will be an ideal response?
In the above figure, if the wage rate fell below Wb, in the short run the firm would
A) hire more workers. B) fire several workers. C) reduce its level of output. D) keep all its input levels the same as they were before.
Product differentiation in monopolistically competitive markets implies that: a. firms make economic profits in the long run
b. firms will produce at the minimum of the average total cost curve in the long run. c. individual firms face downward-sloping demand curves. d. firms are certain to earn economic profits in the short run.
In analyzing the market for a particular good, the most appropriate size of the market to consider
a. is the global market b. is a local market c. is a national market d. is a state-wide market e. depends on the purpose of the analysis