When a firm produces at the point where MR = MC, the profit that it is earning is considered to be
A) maximum.
B) normal.
C) above normal.
D) Not enough information is provided.
D
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Tax distortions refer to the cost of inflation that comes from:
A. the time, money, and effort one has to spend managing cash in the face of inflation. B. the money, time, and opportunity used to change prices to keep pace with inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all. D. labor costs associated with inflation.
Describe how health care insurance affects the market for health care in a simple supply and demand model
What will be an ideal response?
Suppose that a disease that affects people who consume beef has been discovered in the United States. One likely result is:
A. an increase in buyers' reservation prices for beef. B. a decrease in demand for beef. C. a decrease in demand for chicken. D. a decrease in the quantity demanded of beef.
If a firm's short-run average cost curves are u-shaped, does this imply that the long-run average cost curve must also be u-shaped?
What will be an ideal response?