Author Question: In both perfect competition and monopoly, a firm: a. maximizes profit by equating marginal revenue ... (Read 66 times)

jjjetplane · **on:** Jun 30, 2018

In both perfect competition and monopoly, a firm:
a. maximizes profit by equating marginal revenue to marginal cost.
b. will shut down in the short run if price is less than average variable cost.
c. will always earn a zero economic profit.
d. will be characterized by both (a) and (b).

Question 2

When dealing with strategic trade policy, one practical problem for government is the likelihood of retaliation by foreign governments.
a. True
b. False
Indicate whether the statement is true or false