A perfectly competitive firm is producing a good at a level where P = $30 and MC = $30. The firm will continue to produce in the short run as long as:
A. AVC is less than $30.
B. AFC is less than $30.
C. price does not increase.
D. ATC is greater than $30.
Answer: A
Economics
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The indifference map
A) shows that the consumer is indifferent among all consumption bundles. B) is an individual indifference curve. C) captures the same information as the utility function. D) is impossible to derive from the utility function.
Economics
There are many wheat farmers in the world, and there are also many McDonald's restaurants in the world. Why, then, does a McDonald's restaurant face a downward-sloping demand curve while a wheat farmer faces a horizontal demand curve?
What will be an ideal response?
Economics