If it is possible for a perfectly competitive firm to do better financially by producing rather than

Question:

If it is possible for a perfectly competitive firm to do better financially by producing rather than shutting down, then it should produce the amount of output at which:

a. MR < MC.

b. MR = MC.

c. MR > MC.

d. none of the above.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

See More Books

Question Posted: Apr 25, 2018 01:30 AM

See More Questions

Is it ever better for a perfectly competitive firm to produce output even though it is losing money? If so, when?
1. Draw the Supply Curves. The following table shows short-run marginal costs for a perfectly competitive firm: a. Use this information to draw the firms marginal cost curve. b. Suppose the shut-down...
Complete the following table for a perfectly competitive firm, and indicate its profit-maximizingoutput. Total Marginal Marginal Quantity Price Revenue Revenue Total Cost Cos Total Profit $10 $30 35...
Mrs Anh Thuy is a 43 year old lady admitted following an incidence of blurred vision, numbness down the right side and a sharp pain in her head. A neighbour found her on the ground unable to move or...
Identify a company in that industry and respond to the following questions. Consider the concepts covered in the course material and in anticipation of issuing a qualified audit report. Write a paper...
Assume the security market line given below. Assume that analysts have estimated the beta on two stocks as follows: x = 0.5 and y = 2. What must the expected return on the two securities be in...
A viscosity motor/pump is shown in Fig. P6.84. The rotor is concentric within a stationary housing. The clearance $h$ between the housing and the rotor is small compared to the width $w$ and...
Presented below are two independent transactions. Both transactions have commercial substance. 1. Rangi Co. exchanged old trucks (cost $64,000 less $22,000 accumulated depreciation) plus cash of...
You work for an electronics manufacturing company located in the United States. Your company plans to sell mobile phones to a distributor in Argentina, and you have drafted a distribution contract. A...
Allie has bought a new apple orchard. The orchard has a single file of trees, numbered from 1 to N. Each tree has a certail number of ripe apples. Allie has a rule she wants to follow. She wants to...
Consider the following reaction: a. Draw the mechanism of this reaction. b. What is the rate equation of this reaction? c. Draw an energy diagram of the reaction. H2SO, Heat OH
Equation (3.38), C P = C V + TV ( 2 /). links C P and C V with and . Use this equation to evaluate C P C V for an ideal gas.
Is it ethical for a company to promise benefits and then years later walk away from the promise? Discuss.
Assume the same information for Keebler-Olson as in Problems 11-31, 11-32, 11-33, and 11-34. James plans to invest $100 in each of the 1,000 loans he is examining. If he decides not to invest in a...
The only prolabor name among the following is __________. a) Sherman b) Clayton c) Taft-Hartley d) Wagner
The most important influence on a firms demand for a factor of production is _________. a) the quantities of other resources b) the prices of other resources c) its productivity d) the demand for the...
The firm will hire workers until the wage rate and the of the last worker hired are equal. a) marginal physical product b) MRP c) output
Which one of the following statements is false? a) There are more union members working in the public sector than in the private sector. b) About 1 worker in 15 privately employed workers is a union...
Find h' in terms of f' and t'. h(x) = f (x) t(x) f (x) 1 t(x) 80.
In Problem use absolute value on a graphing calculator to find the area between the curve and the x axis over the given interval. Find answers to two decimal places. y = x 3 ln x; 0.1 x 3.1
This question will compare two different arbitrage situations. Recall that arbitrage should equalize rates of return. We want to explore what this implies about equalizing prices. In the first...
This question will compare two different arbitrage situations. Recall that arbitrage should equalize rates of return. We want to explore what this implies about equalizing prices. In the first...
This question will compare two different arbitrage situations. Recall that arbitrage should equalize rates of return. We want to explore what this implies about equalizing prices. In the first...
Find the first derivative of the following equation: a. b. y=e3x y=e(x+1) d. y=125x+16-2x y=ln x y=ln (3x+x1) y=In (x+1)
The Cutting Department of Lasso Company has the following production and cost data for August. Production Costs 1. Started and completed 9,600 units. Beginning work in process $0 2. Started 2,300...
There is sufficient evidence to support the conclusion that a robust relationship exists between drugs and crime. Explain and discuss the studies that support this conclusion. Further explain and...

If it is possible for a perfectly competitive firm to do better financially by producing rather than

Question:

Step by Step Answer:

b MR MC First keep in mind that depending upon its circumstances it may be better for a firm to shut ...View the full answer

Microeconomics Principles, Problems and Policies

Students also viewed these Business questions