To maximize profits, a perfectly competitive firm should produce until:
A. average total cost is minimized.
B. marginal cost is equal to price.
C. per unit profits are maximized.
D. price is greater than average total cost.
Answer: B
You might also like to view...
"Given that labor remains relatively immobile within Europe, the European Union's success in liberalizing its capital flows may have worked perversely to worsen the economic stability loss due to the process of monetary unification." Discuss
What will be an ideal response?
Available evidence indicates that stock prices, even if not exactly a random walk, are very close to a random walk
a. True b. False Indicate whether the statement is true or false
Figure 7-7
In Figure 7-7 at 100 units, AVC equals
a.
8.
b.
800.
c.
100.
d.
1,000.
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. Why is Jason not maximizing his utility at point B?
A. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. B. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. C. He is not spending his entire budget. D. He is maximizing his utility at point B.