Within the framework of the price-taker model, a price taker will always produce a quantity of output that
a. minimizes the per-unit cost of production.
b. is expected to provide the largest possible total revenue.
c. maximizes total revenue minus total cost.
d. brings average total cost and price into equality.
C
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With perfect price discrimination, a monopoly can extract the ________ price each customer is willing to pay and thereby obtain the entire ________ surplus
A) maximum; consumer B) minimum; producer C) maximum; producer D) minimum; consumer E) None of the above answers is correct.
After September 11, 2001, President George W. Bush believed in the need for a fiscal stimulus. The proper fiscal policy to reflect this could include a(n)
a. increase in taxes. b. reduction in transfer payments. c. increase in government purchases. d. All of the above are correct.
If average labor productivity decreases, then the same number of employed workers will always produce:
A. less output per person. B. more total output. C. more output per person. D. less total output.
Accounting profit is equal to:
A. explicit revenue minus explicit measurable costs. B. implicit and explicit revenues minus implicit costs. C. explicit revenue minus implicit and explicit costs. D. implicit revenue minus implicit costs.