A perfectly competitive firm maximizes its profit by
A: setting its price so that it exceeds the marginal revenue.
B: choosing to produce the quantity that sets MC equal to MR.
C: cutting wages.
D: manipulating demand.
A: setting its price so that it exceeds the marginal revenue.
B: choosing to produce the quantity that sets MC equal to MR.
C: cutting wages.
D: manipulating demand.
举一反三
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- A firm in a perfectly competitive market will tend to expand its output as long as: A: its marginal revenue is positive. B: the market price is greater than the marginal cost. C: its marginal revenue is greater than the market price.
- A competitive firm maximizes profit by choosing the quantity at which ( ) A: average total cost is at its minimum. B: marginal cost equals the price. C: average total cost equals the price. D: marginal cost equals average total cost.
- A monopolist maximizes profits by A: producing an output level where marginal revenue equals marginal cost. B: charging a price that is greater than marginal revenue. C: earning a profit of (P - MC) x Q. D: Both a and b are correct.
- If a firm in a perfectly competitive market tries to raise its price above the going market price, then: