If a perfectly competitive firm is operating in the short run and seeks to maximize profit, the firm should:
a. increase output whenever marginal cost is less than average total cost.
b. increase output whenever marginal revenue is less than marginal cost.
c. choose the output where per-unit profit is greatest
d. increase output whenever price exceeds marginal cost.
d
You might also like to view...
Although imperfect, which of the following is used as a measure of the standard of living?
A) real GDP ÷ population B) real GDP × population C) nominal GDP × population D) nominal GNP ÷ population E) nominal GNP × population
Experimental evidence indicates women choose less competitive environments than men
a. True b. False Indicate whether the statement is true or false
Which of the following is not listed in the book as a reason to study economics?
A. to be an informed citizen B. to learn a way of thinking C. to understand society D. to learn how to make lots of money
If an employer cannot distinguish the ability of workers a separating equilibrium will result
Indicate whether the statement is true or false