Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?
a. The firm is a price taker.
b. Price exceeds average total cost.
c. The elasticity of demand facing the firm is ?3.
d. the firm can vary several inputs in the short run.
c
You might also like to view...
Which of the following describes how output changes in the short run? Because of specialization and the division of labor, as more workers are hired
A) output will first decrease at an increasing rate, then increase at a decreasing rate. B) the marginal product of labor will first be negative and then will be positive. C) output will first increase at an increasing rate, then output will increase at a decreasing rate. D) the marginal product of labor will first decrease, then increase at a decreasing rate.
In the long run, according to Monetarists
a. the natural rates of output and employment depend on factor supplies. b. the natural rates of output and employment depend on technology. c. the influence of the money stock is mainly on the price level and other nominal variables. d. All of the above