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Author Question: If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC ... (Read 110 times)

asmith134

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on: Jun 29, 2018
If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will
 
  A) leave the industry.
  B) decrease its output.
  C) increase its output.
  D) not change its behavior.

Question 2

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?
 
  A) The marginal utility per dollar spent on X will exceed the marginal utility per dollar spent on Y.
  B) The total expenditure will be the same for each good.
  C) The marginal utility per dollar from X equals the marginal utility per dollar from Y.
  D) The marginal utility will be the same for each good.


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cclemon1

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

C


asmith134

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

jordangronback

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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