A profit-maximizing, price-taking firm should cease production whenever:
a. the firm is making a loss
b. the firm is earning zero economic profit.
c. the price is less than minimum average fixed cost.
d. the price is less than minimum average variable cost.
d
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The marginal benefit of pollution abatement is the
A) additional cost to clean up an additional unit of pollution. B) additional benefit from cleaning up an additional unit of pollution. C) total social costs of pollution clean-up divided by total social benefits. D) total social costs of pollution clean-up divided by the total units of clean-up.
The product price is $10 per unit and the cost per worker is $540. How many workers will the firm employ?
A profit-maximizing firm operates in purely competitive product and resource markets, with the following resource and production schedules.
A. 4
B. 5
C. 6
D. 7