A perfectly competitive firm that is producing a positive quantity of a good maximizes its economic profit if it produces so that
A) total revenue = total cost.
B) marginal revenue = marginal cost.
C) average revenue = average total cost.
D) average total cost = average variable cost.
B
Economics
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Which of the following variables is the key determinant in deciding whether goods are to be bought domestically or imported?
A) The real exchange rate B) The domestic interest rate C) The nominal exchange rate D) The foreign interest rate
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Based on Table 3.1, trade between the United States and Mexico will occur as long as the relative price of shoes is between
A) three computers and one computer. B) three computers and two computers. C) one-half computer and one-third computer. D) six computers and three computers.
Economics