Author Question: As long as it does not shut down, a profit-maximizing perfectly competitive firm will A) always ... (Read 109 times)

s.tung · **on:** Jun 29, 2018

As long as it does not shut down, a profit-maximizing perfectly competitive firm will

A) always earn an economic profit.
B) produce so that marginal revenue equals marginal cost.
C) produce so that price equals average cost.
D) never set its price equal to its marginal revenue.

Question 2

The above table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases

A) both his total utility and his marginal utility increase.
B) his total utility increases, but his marginal utility decreases.
C) his total utility decreases, but his marginal utility increases.
D) both his total utility and his marginal utility decrease.