An economy is producing at the least-cost rate of production when:
A. marginal cost is greater than average total cost.
B. price and marginal revenue are equal.
C. price and the minimum average cost are equal.
D. marginal revenue is greater than price.
Answer: C
You might also like to view...
Marginal tax rates and average tax rates are rarely the same. What happens to the relationship between marginal tax rates and average tax rates as incomes rise in the highest tax brackets?
What will be an ideal response?
Suppose that firms in the chemical industry are allowed, free of charge, to dump harmful products into rivers. If this is the case in a competitive market, how will the price and output of the chemical products compare with their values under conditions of ideal economic efficiency?
a. Price is too low; output is too large. b. Price is too high; output is too large. c. Price is too low; output is too small. d. Price is too high; output is too small.
Which international relations theory supports the idea that it wouldn't matter who the hegemon is in a new world system?
a. constructivist theory b. realist theory c. feminist theory d. liberal theory
All else equal, a smaller elasticity of the supply curve to the other firms leads to a ________ individual firm's residual elasticity of demand
A) less elastic B) unit elastic C) more elastic D) zero