Suppose Atlas Publishing, a perfectly competitive firm, currently produces 2,000 maps per day at a total cost of $1,600 . At its current level of output, Atlas is producing where the marginal revenue curve intersects a rising marginal-cost curve. Which of the following can be concluded about Atlas Publishing?
a. It is maximizing profit.
b. It should produce more to maximize profit.
c. It is incurring losses.
d. It should produce less to maximize profit.
e. It should produce more to break-even.
a
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If the demand for beans tends to decline as incomes rise, everything else held constant, beans are _____
a. luxury goods b. normal goods c. price sensitive d. not price sensitive e. inferior goods
Which of the following is correct?
a. The word economy comes from the Greek word for "rational thinker.". b. Economists study the management of scarce resources. c. Because economists believe that people pursue their best interests, they are not interested in how people interact. d. All of the above are correct.
Price discrimination requires ______.
a. different demand curves for different markets b. identical demand curves for different markets c. inelastic customer demand d. a single market for a product
The amount by which federal tax revenues exceed federal government expenditures during a particular year is the:
A. Federal Reserve. B. budget deficit. C. budget surplus. D. public debt.