Suppose your firm has a U-shaped average variable cost curve and operates in a perfectly competitive market
If you produce where the product price (marginal revenue) equals average variable cost (on the upward sloping portion of the AVC curve), then your output will: A) exceed the profit-maximizing level of output.
B) be smaller than the profit-maximizing level of output.
C) equal the profit-maximizing level of output.
D) generate zero economic profits.
A
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Missy recently rearranged her portfolio so that it has a higher average return. As a result of this rearranging, Missy
a. raised both firm-specific risk and market risk. b. raised firm-specific risk, but not market risk. c. raised market risk, but not firm-specific risk. d. None of the above is correct.
Answer the following statements true (T) or false (F)
1) Monetarists say the velocity of money is highly variable and there is no close link between the money supply and the level of economic activity. 2) According to monetarists, discretionary monetary policy has been a major source of economic instability. 3) The equation of exchange is MV = PQ. 4) Mainstream macroeconomists see two main sources of macroeconomic instability: changes in investment spending and, occasionally, adverse aggregate supply shocks.