The profit-maximizing output for the perfectly competitive firm occurs at the point at which
A) TR - MR is at a maximum.
B) TR - TC is at a minimum.
C) MR = MC.
D) TR - ATC is at a maximum.
Answer: C
You might also like to view...
Within the range of prices around the midpoint on a straight-line demand curve, demand is
A) elastic. B) inelastic. C) unit-elastic. D) zero.
Forest lives in complete isolation in Montana. He is self-sufficient and feeds himself through hunting, fishing, and farming. Which of the following statements about Forest is true?
A. Forest has to make trade-offs. B. Forest has unlimited resources. C. Forest doesn't have to consider costs and benefits. D. Forest is not required to make trade-offs because he is self-sufficient.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
In real terms, the cost of government spending is measured by
A. Subtracting private sector output from the public sector output sacrificed when the government employs scarce resources. B. The public sector output sacrificed when the government employs scarce resources. C. The private sector output sacrificed when the government employs scarce resources. D. Combining the private sector output with the public sector output sacrificed when the government employs scarce resources.