Refer to thebelow graph of a representative firm in monopolistic competition. If curve (2) represents ATC and line (3) represents demand, then curve (1) and line (4) would be:
A. MC and TR, respectively
B. AVC and MR, respectively
C. MC and MR, respectively
D. TC and TR, respectively
C. MC and MR, respectively
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The following table shows the total physical product of labor. Compute the marginal physical product (MPP) of labor and the marginal revenue product (MRP) of labor at output prices of $10 per unit and $12 per unit. If labor costs $105 per unit, how much should the firm hire at each price of output? Total Physical MPP of Labor MRP at a Price of $10 MRP at a Price of $12 LaborProduct of Labor 110_______________222_______________335_______________447_______________558_______________668_______________777_______________885_______________?
What will be an ideal response?
If the market price ever drops below a firm's average variable costs at its profit-maximizing level of output the:
A. firm should shut down immediately. B. loss-minimizing quantity of output is zero. C. firm is not earning enough revenue to cover the variable costs of production. D. All of these are true.
Whenever any firms in a concentrated industry merge, the four firm concentration ratio ___ and the Herfindahl-Hirschman Index ____: a. Will rise; will rise
b. Will rise; may rise or stay the same. c. May rise or stay the same; will rise. d. May rise or stay the same; May rise or stay the same.
Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling
a. $2 million b. $4 million c. $10 million d. $16 million e. $20 million