At the level of output where the marginal cost and marginal revenue curves intersect, two firms demand curves pass above their average total cost curve. One firms is a monopoly and the other is perfectly competitive. Which statement is true for both firms?
A. The firms are making an economic profit.
B. Price equals marginal revenue.
C. Price equals marginal cost.
D. Entry of new firms is expected in the market.
Answer: A
Economics
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Efficiency wages are
A) the result of demographic change. B) set below the equilibrium level of the real wage. C) offered by firms who want to reduce turnover in the labor force. D) special wages offered to teenagers. E) mandated by law.
Economics
A student wrote: "When the average product of labor exceeds the marginal product, the marginal product is increasing." If you were the instructor, how would you correct this statement?
What will be an ideal response?
Economics