As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
A. marginal cost curve.
B. average total cost curve.
C. average variable cost curve.
D. market demand curve.
Answer: A
Economics
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The social cost is negative in case of a negative externality
a. True b. False Indicate whether the statement is true or false
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The difference in the price the buyer pays and the price the sellers keep in the presence of a tax is called:
A. a tax differential. B. a tax wedge. C. the tax incidence. D. the tax burden.
Economics