If a purely competitive firm is producing at some level less than the profit-maximizing output, then:
A. price is necessarily greater than average total cost.
B. fixed costs are large relative to variable costs.
C. price exceeds marginal revenue.
D. marginal revenue exceeds marginal cost.
Answer: D
Economics
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Refer to the scenario above. This game ________
A) has a unique Nash equilibrium B) has a unique dominant strategy equilibrium C) does not have a dominant strategy equilibrium D) does not have a Nash equilibrium
Economics
Which of the following is not an example of rent-seeking behavior?
A) competition for subsidies B) competition for the exclusive right to import a product C) lobbying the government to impose tariffs on certain imported products D) engaging in aggressive advertising that slams a competitor's product
Economics