If PY increases and costs of production remain unchanged, the profit-maximizing firm will:
A) decrease output because it costs more to produce each unit of output
B) will increase output until the new MR is equal to the MC
C) will use the same level of inputs
D) will produce the same amount of output since the firm is a price taker and can not affect market prices
Correct Answer:
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Q1: In the short run, a firm will
Q2: The output level that maximizes profit is
Q4: A profit-maximizing firm will produce where:
A) the
Q5: To find the profit maximizing level of
Q6: An increase in a tax on an
Q7: The firm's demand curve for a factor
Q8: Perfect competition is an important assumption in
Q9: The break-even point is:
A) always calculated from
Q10: Profit, on a per-unit basis, is calculated
Q11: Below are the costs for a
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