If a firm's demand curve is perfectly elastic, then at the profit-maximizing level of output
A. P = MR = MC.
B. P < MR < MC.
C. P > 0 and MR = 0.
D. P > MR > MC.
Answer: A
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A firm's total product curve shows
A) that inefficiency is not possible. B) how the cost of the fixed resources change when output changes. C) how the amount of output changes when the quantity of labor changes. D) that in the long run the firm must adjust the quantity of all the resources it employs.
If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?
a. Shoes and laces b. Tennis balls and tennis rackets c. Turkey and chicken d. Knives and forks e. DVD players and DVDs
If Scotland produces only mead, and England produces only ale, how many pints of ale would buy one pint of mead?
a. no fewer than the opportunity cost of mead in Scotland b. fewer than the opportunity cost of mead in Scotland c. fewer than the opportunity cost of mead in England d. as many pints of mead as you can buy with one pint of ale e. not enough information given
The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor.
Answer the following statement true (T) or false (F)