Multiple Choice
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit-maximizing firm?
A) The firm is a price taker.
B) Price exceeds average total cost.
C) The elasticity of demand facing the firm is -3.
D) The firm can vary several inputs in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: In order to maximize profits,a firm should
Q12: Suppose capital and labor must be used
Q13: An input's marginal revenue product is given
Q13: If a price-taking firm's production function
Q19: If the demand curve a firm faces
Q22: If the demand faced by a firm
Q23: In an input market,economic rent is defined
Q26: A profit-maximizing firm will never hire that
Q30: A profit-maximizing firm's demand function for labor
Q32: The size of the reduction in quantity