If price is below average variable costs at all rates of output, the quantity supplied by a perfectly competitive firm will equal
A) zero.
B) the rate of output where price equals marginal cost.
C) the rate of output associated with the break-even point.
D) the rate of output where marginal revenue equals average fixed costs.
A
Economics
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A lower interest rate ________ Ap and thus causes ________ the IS curve
A) raises, movement downward along B) lowers, movement upward along C) raises, a parallel rightward shift of D) lowers, a parallel leftward shift of
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Show what happens to the person's labor supply curve when the income tax is cut from 70 percent to 30 percent
Denote hours worked as H and wage per hour as w.
Economics