Question: As long as it does NOT shut down, a profit-maximizing perfectly competitive firm will Select one: O a. produce so that price equals average cost.

As long as it does NOT shut down, a profit-maximizing perfectly competitive firm will Select one: O a. produce so that price equals average cost. O b. always earn an economic profit. c. never set its price equal to its marginal revenue. d. produce so that marginal revenue equals marginal cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

As long as it does NOT shut down, a profit - maximizing perfectly competitive firm will Group of answer choices always earn an economic profit. produce so that marginal revenue equals marginal cost....

MC 18 ATC AVC 16 14 Price and cost dollars per unit NA 0 10 o 5 10 15 20 25 30 35 40 45 50 Quantity lunits per day! In the above figure, if the price is $16, a profit-maximizing perfectly competitive...

DeBeers Consolidated Mines is a natural monopoly. Select one: True False 2. Which of the following is true of a patent? Select one: a. It reduces a firm's incentive to develop new products. b. It is...

*In an increasing-cost industry, an increase in industry output will Select one: a. lead to a lower market price. b. shift each firm's short run supply curve down. c. lead to a higher market price....

The Hound Dog Bus Company contemplates expanding its New Mexico operations by offering services from Raton to Santa Fe. It has estimated that the total cost of the trip will be $400, of which $150 is...

1.How are a typical monopolistically competitive firm and a typical perfectly competitive firm alike? Select one: a. Both achieve productive efficiency only. b. Both achieve allocative efficiency...

A s long a s i t does NOT ? ( ) shut down, a profit - maximizing perfectly competitive firm will always earn a n economic profit. produce s o that marginal revenue equals marginal cost. produce s o...

What is the primary characteristic of a purely competitive market? Product differentiation Many buyers and sellers Few sellers Price control by firms Barriers to entry In the short run, a firm in a...

1. To say that a firm is a "price taker" means that Select one: a. consumers must pay the price that an individual firm is charging. b. the firm has no control over the market price, and thus needs...

A vector v = (a,..., an) ER" is called strongly positive if a; > 0 for all i = 1,..., n. a) Suppose that v is strongly positive. Show that any vector that is "close enough" to v is also strongly...

Explain methods of understanding and applying the Ten Principles of Economics. How economics are applied in a society of consumers? How limited resources apply to an expanding society? How the...

A company has recently implemented responsibility accounting in all seven segments of the company. The following information is available for Segment W for the last quarter. Based on the information...

For your graduation present from college, your parents are offering you your choice of two alternatives. The first alternative is to give you a gift of $19,000. The second alternative is to make an...

Compare the Building Society job statement with a conventional job description. In what ways does it differ and how valuable might it prove for the employee?

How would you best sell the human resources function to the rest of the organisation?

Read the section on technology and draw up a list of advantages and disadvantages of using social media in the recruitment process.