To increase its profit, a perfectly competitive firm will produce more output when
A) price is greater than average fixed cost.
B) price is greater than marginal cost.
C) marginal cost is less than average total cost.
D) average variable cost is greater than average fixed cost.
E) price is greater than average variable cost.
B
Economics
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If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately
a) 1% B) 3% C) 7% D) none of the above
Economics
According to the theory of rational expectations, a fully anticipated expansionary monetary policy will
(a) increase potential output (b) increase unemployment (c) have no impact on real output (d) promote the production of consumer goods over capital goods (e) result in deflation
Economics