Suppose your firm has a U-shaped average variable cost curve and operates in a perfectly competitive market
If you produce where the product price (marginal revenue) equals average variable cost (on the upward sloping portion of the AVC curve), then your output will: A) exceed the profit-maximizing level of output.
B) be smaller than the profit-maximizing level of output.
C) equal the profit-maximizing level of output.
D) generate zero economic profits.
A
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If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A) unit elastic. B) relatively inelastic. C) elastic. D) perfectly elastic.
Which of the following types of goods tend toward elastic demand?
a. luxuries b. durable goods c. goods with multiple uses d. All of these.
Refer to Table 19-19. Given the information above, calculate the GDP deflator in 2015
A) 87 B) 95 C) 105 D) 114
The sum of the components of aggregate expenditure that are not influenced by real gdp is called?
A) autonomous consumption. B) the MPC. C) autonomous expenditures. D) induced expenditures.