Whenever a perfectly competitive firm chooses to change its level of output, its marginal revenue
a. increases if MR < ATC and decreases if MR > ATC.
b. does not change.
c. increases.
d. decreases.
b
You might also like to view...
If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________
A) downward sloping; downward sloping B) upward sloping; horizontal C) horizontal; downward sloping D) downward sloping; horizontal E) upward sloping; downward sloping
Unless otherwise specified, because it is what people and businesses use in their day-to- day market transactions, when referring to money, economists are talking about
a. M1 b. M2 c. M3 d. credit cards e. liquidity
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Entry into a perfectly competitive industry to occurs whenever:
A. accounting profit is equal to zero. B. economic profit is equal to zero. C. accounting profit is greater than zero. D. economic profit is greater than zero.