In a typical graph for a purely competitive firm, the intersection of the total cost and total revenue curves would be:
A. a break-even point.
B. a point of maximum economic profit.
C. a point where MR = MC.
D. a point of minimum economic loss.
Answer: A
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Refer to Table 12-1. If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?
A) $0 (it breaks even) B) loss of $1,000 C) profit of $440 D) loss of $440
________ policy involves decisions about government spending and taxation
A) Monetary B) Fiscal C) Financial D) Systemic
A marginal propensity to save of 0.20 results in a multiplier of
A) 2. B) 5. C) 1.25. D) 8. E) 1.
Refer to Figure 8.1. Holding other variables constant, an improvement in technology will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.