Multiple Choice
To maximize profit a perfectly competitive firm supplies a good up to the point at which:
A) the marginal revenue is higher than the marginal cost.
B) the marginal cost of producing the good is zero.
C) the price of the good equals marginal cost.
D) the average revenue equals average cost.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: Refer to Figure 2.1 below. At a
Q41: The gains from trade are divided in
Q42: Suppose the domestic supply (Q<sup>S</sup>) and
Q43: Which of the following events would lead
Q44: Country A produces shoes at a lower
Q46: Which of the following is an example
Q47: Suppose the domestic supply (Q<sup>S</sup><sub>U.S.</sub>) and
Q48: Which of the following groups is most
Q49: When free trade begins, producers in the
Q50: Suppose the domestic supply (Q<sup>S</sup>) and