If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will
A) leave the industry.
B) decrease its output.
C) increase its output.
D) not change its behavior.
C
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The Bureau of Labor Statistics is part of the U.S. Department of Labor
a. True b. False Indicate whether the statement is true or false
The role that prices play in directing resources away from overcrowded markets and towards markets that are underserved is known as the ________ function of price.
A. allocative B. rationing C. market D. transitive
According to convergence theory, countries that start out poor should initially grow:
A. faster than ones that start out rich, and will eventually surpass their level of income. B. faster than ones that start out rich, but will eventually slow to the same growth rate. C. slower than ones that start out rich, but will eventually grow to the same growth rate. D. slower than ones that start out rich, and therefore will never reach a similar growth rate.
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.