As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________

For a number of years, General Motors used a pricing strategy designed to maintain at least 40 percent of the American car market. Does this strategy suggest that GM was maximizing profits or pursuing an alternative strategy?

The optimal number of trucks is

Consider the following production function for a delivery service.


Each delivery generates $200 in gross revenue, and the tax rate is 10 percent on profits. Each truck costs $11,000.

a) 1
b) 2
c) 3
d) 4
e) 5