The firm earns an economic profit whenever
a. price is less than average total cost
b. marginal revenue exceeds total revenue
c. average variable cost exceeds total revenue
d. marginal cost minus average cost is positive
e. price is greater than average total cost
E
Economics
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Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?
Economics
The slope of a consumer's indifference curve between two commodities represents
a. her marginal rate of substitution between the commodities. b. the relative prices of the goods. c. her marginal revenue from selling the commodities. d. her marginal revenue product from consuming the commodities.
Economics