Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. If the price-taking firm is currently producing 6 units, it should _____ to maximize profit in the short run
a. ?decrease production below 6 units
b. ?increase production to 12 units
c. ?increase production to 8 units
d. ?keep producing 6 units
e. ?increase production to 14 units
Ans: b. ?increase production to 12 units
You might also like to view...
Jack just told his boss that he thinks his boss is an idiot. It is likely that Jack will be experiencing ________ unemployment in the near future
A) cyclical B) structural C) frictional D) permanent
Which of the following is an objective of macroeconomic stabilization?
(a) eliminating current account deficits. (b) controlling inflation. (c) restoring fiscal balance. (d) all of the above.
A monopoly does not have a supply curve
What will be an ideal response?
Comparative advantage implies that you
A) can produce more units of a good or service than another. B) can produce a good or service at a lower opportunity cost. C) can produce goods with more capital resources. D) can produce goods with more human resources.