When a firm is a price searcher, its marginal revenue is
a. equal to price because the firm's demand curve is perfectly elastic.
b. equal to price if, and only if, the firm is maximizing profits.
c. less than price when the firm is maximizing profits.
d. equal to average total cost at the long-run equilibrium output rate.
C
You might also like to view...
An oligopoly model that describes formal collusion is the
a. kinked demand curve model b. cartel model c. cost-plus pricing model d. game theory model e. horizontal merger model
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number of people in the civilian labor force is
a. 30. b. 60. c. 85. d. 90. e. 70.
The quantity equation is M x V = P x Y
a. True b. False Indicate whether the statement is true or false
If this firm were a perfect competitor selling its entire output at a price of $1, the marginal revenue product of the third unit of input would be
A. $0.
B. $1.
C. $2.
D. $3.