Author Question: If a perfectly competitive firm is operating in the short run and seeks to maximize profit, the firm ... (Read 51 times)

formula1 · **on:** Jun 30, 2018

If a perfectly competitive firm is operating in the short run and seeks to maximize profit, the firm should:
a. increase output whenever marginal cost is less than average total cost.
b. increase output whenever marginal revenue is less than marginal cost.
c. choose the output where per-unit profit is greatest.
d. increase output whenever price exceeds marginal cost.

Question 2

In Country X, the highest 10 percent of families account for 70 percent of the income. In Country Y, the highest 10 percent of families account for 20 percent of the income. In this example:
a. Country Y would be located on the line of perfect inequality.
b. income is more equally distributed in Country Y.
c. income is more equally distributed in Country X.
d. Country X would be located on the line of perfect equality.
e. the degree of income inequality is equal in both the countries.