The cost to a firm of producing one more unit of output
A) usually exceeds the firm's price.
B) is significantly less than the firm's price for purely competitive firms operating in long-run equilibrium.
C) usually equals the firm's price for monopolistically competitive firms.
D) is the firm's marginal cost.
D
You might also like to view...
Which of the following was NOT an argument in favor of the United Kingdom (UK) leaving the European Union (EU)?
A. Proponents of leaving wanted greater control over immigration. B. Proponents of leaving believed the UK paid a disproportionate share of membership fees. C. Proponents of leaving wanted greater access to markets in the other EU member countries. D. Proponents of leaving stressed that the UK needed to reestablish British sovereignty.
Suppose a decrease in price increases quantity demanded from 8 to 12. Using the mid-point formula, the percentage change in quantity demanded is:
A. 0.1, and is elastic. B. - 0.40 = - 40 percent. C. 0.40 = 40 percent. D. 40 = 400 percent.