Carolina Baby Inc produces and sells dresses for kids in a perfectly competitive market. Which of the following will be the firm's profit-maximizing outcome?
a. The firm earns a marginal revenue of $20 if it produces 600 dresses at a marginal cost of $15.
b. The firm earns a marginal revenue of $20 if it produces 700 dresses at a marginal cost of $20.
c. The firm earns a marginal revenue of $20 if it produces 800 dresses at a marginal cost of $24.
d. The firm earns a marginal revenue of $20 if it produces 900 dresses at a marginal cost of $27.
b
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A current account deficit
A) will not pose a problem, especially if it is accompanied by an expansionary fiscal policy. B) may pose no problem if the borrowed funds are channeled into productive domestic investment projects that pay for themselves with the revenue they generate in the future. C) may still pose a problem, even if the borrowed funds are channeled into productive domestic investment projects. D) There is no relation between current account surplus and between savings and investment. E) will pose a problem because the country is borrowing funds from the rest of the world that it won't be able to pay back later.
The industry that most closely approximates the conditions of the oligopoly model is:
a. Restaurant. b. Retail clothing. c. Home construction. d. Airlines.