The primary objective of an imperfectly competitive firm is to:
A. maximize profit.
B. charge the highest possible price.
C. minimize total cost.
D. maximize total revenue.
Answer: A
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If, during the negotiations between the union and the management, a lockout occurs, it would be because
a. The management is trying to convince the union that it would stick to its strategy b. The union believes the management's threat c. All of the above d. None of the above
If the demand for a product in an increasing cost perfectly competitive industry decreases, we would expect that price in the long run would ________ and the number of firms in the market would ________.
A. decrease; decrease B. increase; increase C. decrease; increase D. increase; decrease
Refer to Figure 2-16. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?
A) C = factor markets; A = households B) C= product markets; A = firms C) C = factor markets; A = firms D) C = product markets; A = households
If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is
A) 0.9. B) 0.8. C) 0.75. D) 0.6.