Question

Identify the statement below as TRUE or FALSE. Explain your answer and use graph where necessary....

Identify the statement below as TRUE or FALSE. Explain your answer and use graph where necessary. No point will be given for answers without an explanation. [3 points]

a. A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True or False (Determine if the statement is true or false and write the answer below....
True or False (Determine if the statement is true or false and write the answer below. Each question is worth 1 point.) 1) Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry. Answer: 2) Managerial economics refers to the application of macroeconomics and microeconomics to business decision making. Answer: 3) Because it is the only firm operating in a particular market, a monopolist...
1. (50 marks) True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of...
1. True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) Firms typically make investment choices over a small time horizon when profit maximizing. B) The Cobb-Douglas production function can exhibit increasing, decreasing, or constant returns to scale. C) An isoquant represents every point of economically efficient production for a given quantity. D) In the short-run, the marginal product of labor...
    State whether the following question is true or false. Support your answer with brief explanation....
    State whether the following question is true or false. Support your answer with brief explanation.    If a firm with marginal cost equal to $2 faces a demand curve defined as Q_d = 100 - 5P, then profit is at a maximum when price is $10.   [3 marks]    If a firm with marginal cost equal to $2 faces a demand curve defined as Q_d = 100 - 5P, then revenue is at a maximum when price is $10.  ...
True/False 1. Suppose a firm can only vary the quantity of labor hired in the short...
True/False 1. Suppose a firm can only vary the quantity of labor hired in the short run. An increase in the cost of capital will increase the firm's marginal cost. 2. A horizontal demand curve for a firm implies that the firm is selling in a competitive market. 3. If a profit-maximizing firm finds that, at its current level of production, MR < MC, it will operate at a loss.
State whether the following statements are true, false or uncertain and briefly explain the reason for...
State whether the following statements are true, false or uncertain and briefly explain the reason for your choice. Your grade will largely depend on the quality of your explanations. a. Suppose that a firm’s short-run total cost function is STC= 0.1q2 + 4q +100. Will the producer surplus at P=$15 be $302.5? b. Suppose that a firm is price taker. If the price is equal to marginal cost, then the profit is being maximized. c. If a firm wished to...
State whether the following statements are True or False A single-price monopolist maximizes profit where marginal...
State whether the following statements are True or False A single-price monopolist maximizes profit where marginal benefit is at its maximum. A single-price monopolist maximizes profit where marginal cost is at its minimum. The profit-maximizing point for a single-price monopolist is also the revenue maximizing point. In general, price discrimination raises the efficiency of markets. explain/show why.
State whether the following statements are True or False, and explain/show why. A single-price monopolist maximizes...
State whether the following statements are True or False, and explain/show why. A single-price monopolist maximizes profit where marginal benefit is at its maximum. A single-price monopolist maximizes profit where marginal cost is at its minimum. The profit-maximizing point for a single-price monopolist is also the revenue maximizing point. In general, price discrimination raises the efficiency of markets.
PART I- TRUE-FALSE QUESTIONS Following 15 questions are True-False Questions. Write ‘T’ for True and ‘F’...
PART I- TRUE-FALSE QUESTIONS Following 15 questions are True-False Questions. Write ‘T’ for True and ‘F’ for False in the True / False Answer Box. Each question carries ‘2’ mark. Excess capacity characterizes firms in monopolistically competitive markets, even in situations of long-run equilibrium. A competitive market will typically experience entry and exit until accounting profits are zero A monopolist produces an efficient quantity of output but it is still inefficient because it charges a price that exceeds marginal cost...
1. Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer. A...
1. Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer. A fully labeled graph is a welcome addition to any answer (if applicable), though it is not necessary.                                                                                                 A) In the short-run, average variable cost converges to average total cost as output increases. B) The tragedy of the commons states that individuals will overproduce a common                       resource. C) When evaluating social welfare, a government must take a subjective stance on what...
Answer true or false as the case may be 1. Generally the prices of a monopoly...
Answer true or false as the case may be 1. Generally the prices of a monopoly industry will be higher than those of a competitive industry. 2. Monopolists generally want the demand curve they face in the market to be more elastic, in order to increase prices and total income. 3. Diminishing returns means that production is reduced. 4. The average income curve and the marginal income curve is the same as the demand faced by a firm in a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT