In the short run, the profit-maximizing monopolistically competitive firm will produce the rate of output at which
A. P = ATC.
B. P = MC.
C. MR = ATC.
D. MR = MC.
Answer: D
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The Required Reserve Ratio
Optimization in levels calculates:
A) only the costs of an alternative and not the benefits. B) the total net benefits of different alternatives. C) the change in net benefits resulting from a shift from one alternative to another. D) only the benefits of an alternative and not the costs.
In the short run, average fixed cost is constant as output increases
Indicate whether the statement is true or false
Normative economics deals with _________ and positive economics deals with _________
a. "what should be" topics or issues; "what is" topics or issues b. abstractions of reality; reality c. microeconomics; macroeconomics d. negative economic outcomes; positive economic outcomes e. changing economic conditions; unchanging economic conditions