Firms in a monopolistically competitive industry maximize profits by
a. equating total revenue and total cost
b. treating price as given and maximizing output
c. minimizing costs
d. producing the level of output at which MR = MC
e. producing the level of output at which TR = TC
D
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If Sam decides to work, his
A) reservation wage is greater than his wage rate. B) reservation wage is less than his wage rate. C) value of marginal product is greater than his wage rate. D) value of marginal product equals his wage rate.
Assuming prices and wages are fully flexible, the aggregate supply curve will be:
a. upward sloping, but not vertical. b. vertical. c. horizontal. d. downward sloping.
If the Fed wishes to decrease the money supply it could
a. decrease the discount rate. b. decrease reserve requirements. c. sell government securities on the open market. d. Do any of the above.
Which of the following is the correct calculation for determining national income (NI)?
a. Subtract factor payments from GNP to get NNP; subtract foreign revenue from NNP to get NI. b. Subtract factor payments from GNP to get NNP; subtract depreciation from NNP to get NI. c. Subtract depreciation from GNP to get NNP; subtract indirect business taxes from NNP to get NI. d. Subtract depreciation from GNP to get NNP; subtract factor payments from NNP to get NI.