In perfect competition, the firm's marginal revenue curve
A) cuts its demand curve from below, going from left to right.
B) cuts its demand curve from above, going from left to right.
C) always lies below its demand curve.
D) is the same as its demand curve.
D
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Human capital represents: a. the equipment that labor uses on-the-job to improve labor productivity
b. the ratio of capital to labor. c. the education, skill, and training embodied in workers. d. the technology developed by humans that is embodied in equipment. e. the social institutions created by people which promote the accumulation of equipment for production.
Use the following graph to answer the next question.
The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will produce how many units to maximize profits in the short run?
A. 15 B. 20 C. 0 D. 35