Which of the following conditions is TRUE for a profit-maximizing firm in a perfectly competitive industry?
A. MC = AVC
B. ATC = AFC
C. MR = TC
D. MR = MC
Answer: D
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A decrease in price allows a consumer to attain a higher indifference curve
Indicate whether the statement is true or false
Agricultural price supports are
A) price ceilings. B) price floors. C) quantity quotas. D) taxes.
In 2009, the U.S. government's budget deficit increased substantially. Other things the same, this means the
a. supply of loanable funds shifted to the right. b. supply of loanable funds shifted to the left. c. demand for loanable funds shifted to the right. d. demand for loanable funds shifted to the left.
In Figure 5.2, at quantities smaller than Q1,
A. total revenue is falling. B. price elasticity is greater than 1. C. price and total revenue are directly related. D. All of these