Which of the following best describes a situation of economic efficiency?
A) A firm produces to the point at which P = AVC, with MR < MC.
B) A firm produces to the point at which P = ATC, with MC < MR.
C) A firm produces to the point at which MR = AFC, with P = AVC.
D) A firm produces to the point at which MR = MC, with P = MC.
D
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The difference between the value of what a firm sells and its cost of producing it is referred to as
a. gross private investment b. value added c. net exports d. value of product e. expenditure approach
Inflation over time necessarily makes consumers worse off
Indicate whether the statement is true or false
Suppose the intersection of the IS and LM curves is to the left of the FE line. A decrease in the price level would most likely eliminate a disequilibrium among the asset, labor, and goods markets by
A. shifting the IS curve down and to the left. B. shifting the LM curve down and to the right. C. shifting the IS curve up and to the right. D. shifting the FE curve to the left.
The money and other valuables that belong to a corporation or partnership:
a. liabilities b. assets c. ownership d. liens