Which of the following statements about a competitive firm is correct?
A. To maximize profits a competitive firm should produce at that output at which total revenue is greatest
B. In long-run equilibrium a competitive firm will produce at the point of minimum average costs
C. A competitive firm will produce in the short run so long as total receipts are sufficient to cover total fixed costs
D. A competitive firm will close down in the short run whenever price is less than the minimum attainable average total cost
B. In long-run equilibrium a competitive firm will produce at the point of minimum average costs
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Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?
What will be an ideal response?
Other things constant, which of the following would reduce unemployment and raise inflation?
a. businesses become more optimistic about the future of the economy b. because of high growth abroad, net exports rise c. the government cuts taxes d. All of the above are correct.