As the equilibrium price falls in a perfectly competitive market, so do firms':
A. average costs and so do their profits.
B. total costs, and their profits rise.
C. revenue and so do their profits.
D. revenue, and their profits rise.
Answer: C
You might also like to view...
Which of the following is correct? Gross private domestic investment:
a. Includes goods that are produced but not consumed. b. Includes stock and bonds. c. Excludes spending for new residential housing. d. All of the above are correct.
Supply Schedule
What will be an ideal response?
If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:
A. twice as many people are without work than was the case a year ago. B. unemployment doubled in the past year. C. there was a 100 percent increase in unemployment. D. All of these are true.
Which is one of the five fundamental questions that need to be dealt with in any economic system?
A. What makes the rate of unemployment low? B. Who will be the richest group in the economy? C. How will goods and services be produced? D. How high should the prices of goods and services be?