Because firms in perfectly competitive markets can sell any quantity without driving down prices, they should:
A. produce as much as possible to maximize profits.
B. produce at the lowest cost per unit to maximize profits.
C. increase quantity until the additional profit it earns on its last unit sold is zero.
D. try to flood the market.
Answer: C
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International borrowing and lending may be interpreted as one form of
A) intertemporal trade. B) intermediate trade. C) trade in services. D) unrequited international transfers. E) aid to offset trade advantages.
It is still the conventional wisdom in the U.S. that compliance with NAFTA requirements is having a deleterious effect on U.S. highway safety standards, on U.S. pollution and other environmental standards, and on U.S. jobs
What facts would proponents of an expansion of NAFTA (e.g., to include all of Central and South American countries) need to marshall in order to convince you?
The demand curve for labor shows what?
a. The demand for labor is immune to wage pressures. b. There is a negative relationship between wage and quantity. c. The supply of labor is higher at higher wage levels. d. There is a positive relationship between wage and quality.
According to the monetarists,
A. the supply of money changes in response to changes in the levels of real output and prices. B. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change. C. an expansionary fiscal policy will lower interest rates and thereby tend to over stimulate the economy. D. changes in the money supply temporarily cause changes in real output and price level but in the long run only prices change.