Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?
A. It is making economic profits in the long run.
B. Marginal cost equals average variable cost.
C. Its marginal revenue is less than average revenue.
D. It produces at the minimum average total cost.
Answer: D
You might also like to view...
The purpose of antitrust laws is to:
a. reduce anticompetitive activities. b. regulate electric companies. c. guarantee worker safety. d. promote quality products.
A supply curve slopes downward because of the law of supply
a. True b. False Indicate whether the statement is true or false
As the marginal propensity to consume (MPC) decreases, the spending multiplier
a. increases. b. decreases. c. remains constant. d. becomes indefinable.
The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning
a. both the short run and the long run. b. the short run, but not the long run. c. the long run, but not the short run. d. neither the long run nor the short run.