If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A) added more to total costs than it added to total revenue.
B) added more to total revenue than it added to total cost.
C) is maximizing marginal profit.
D) has minimized its losses.
Answer: B
Economics
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As the number of available substitutes increases, the price elasticity of demand for a good:
A) initially increases then decreases. B) initially decreases then increases. C) decreases. D) increases.
Economics
Which of the following is an opportunity cost of cyclical unemployment?
a. A higher wage rate b. A lower interest rate c. Lower taxes paid by the employed d. Costs of updating prices e. Lost earnings of the unemployed
Economics