In a perfectly competitive market, if P < MC, then
A) too little output is being produced.
B) too much output is being produced.
C) production is efficient, as the firm is earning profits.
D) the firm is paying a price for resources that is too high.
B
You might also like to view...
Firms are more likely to find themselves in a prisoner's dilemma in sequential games as opposed to simultaneous games
Indicate whether the statement is true or false
To pay for WW I, the national debt was expanded from ___ percent of GDP at the beginning of the war to ___ percent of GDP by the end of the war
a. 1; 5 b. 2; 13 c. 3; 32 d. The national debt did not expand due to reparations payments.
What branch of economics is concerned with effects of nutrition labeling on the dietary quality of consumers (i.e., what-if types of questions)?
A) Positive economics B) Macroeconomics C) Normative economics D) Microeconomics
Which of the following is a capital resource?
A. a piece of software used by a firm B. a corporate bond issued by a computer manufacturer C. a computer programmer D. silicon (sand) used to make computer chips