Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $825 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits.
B. increase their output.
C. decrease their output.
D. stop producing since it is earning a loss.
Answer: C
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When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be
A) producing the efficient scale of output and is at point A on the ATC curve. B) producing more than the efficient scale of output and is at point C on the ATC curve. C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve. D) producing the efficient scale of output and is at point B on the MC curve.
A government runs a deficit when its government revenues exceed expenditures
Indicate whether the statement is true or false
In the Cournot model, a firm maximizes profit by selecting
A) its output, assuming that other firms keep their output constant. B) its price, assuming that other firms keep their price constant. C) its output, assuming that other firms will retaliate. D) its price, assuming that other firms will retaliate.
Nearly half of the federal government's tax revenues come from
A. Individual income taxes. B. Customs, whiskey, and tobacco taxes. C. Corporate income taxes. D. Social Security payroll taxes.