Quantity where price is equal to marginal cost

Assignment Help Microeconomics
Reference no: EM131031375

Which of the following statement(s) are true for a perfectly competitive firm that is seeking to maximize profits?

The best production choice is at a quantity where price is equal to marginal cost.

Price is equal to marginal revenue.

A profit-seeking firm should expand production into the zone where marginal cost is greater than marginal revenue.

Reference no: EM131031375

Questions Cloud

Output decisions faced by firms : Assignment you will do a significant portion of work in MS Excel and import it into an MS Word document for submission. You will use the data below to address Price and Output decisions faced by firms that are not in pure competition. Some numbers ma..
Determine the enthalpy change dh of oxygen : Determine the enthalpy change Δh of oxygen, in Btu/lbm, as it is heated from 800 to 1500 R
What is the cournot equilibrium price and output : Assume a market demand curve of 240Q - 10p = 0 , if marginal costs are zero what is the cournot equilibrium price and output?
A profit-maximizing firm in the short run will expand outpu : A profit-maximizing firm in the short run will expand output
Quantity where price is equal to marginal cost : Which of the following statement(s) are true for a perfectly competitive firm that is seeking to maximize profits?The best production choice is at a quantity where price is equal to marginal cost.
Which the firm maximizes : 1.To find the output at which the firm maximizes its profits you MUST know the firm's A. ATC                                       B. AVC C. AFC
Discuss the positioning of boost juice in malaysia : Given the competition from the large number of new market entrants and also the local roadside drinks and juice stalls, develop an appropriate marketing communication strategy for Boost Juice in Malaysia
Legitimate finite probability model : (a) Why is this a legitimate finite probability model? (b) What is the probability that the person chosen is a 15- to 19-year-old who lives with others?
Marginal revenue equals average cost : The profit-maximizing principle of marginal analysis says that firms maximize profits by choosing output such that: marginal benefit (or revenue) is greater than or equal to marginal cost. total benefit (or revenue) equals total cost.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd