In perfect competition a firm maximizes profit by _____.1). setting price such that price is equal to or greater than its marginal costs2). setting output such that price equals average total costs3). setting output such that price equals marginal costs4). setting price so that it is greater than marginal cost

In perfect competition a firm maximizes profit by _____.1). setting pr

1.	In perfect competition a firm maximizes profit by _____.1). setting price such that price is equal to or greater than its marginal costs2). setting output such that price equals average total costs3). setting output such that price equals marginal costs4). setting price so that it is greater than marginal cost
Answer» CORRECT answer is: SETTING OUTPUT such that price equals marginal costs

Discussion

No Comment Found

Related InterviewSolutions

If price of an article decreases from P1 to Rs 25, quantity demanded increases from 900 units to 1200 units. If point elasticity of demand is 2 find P1?1). Rs. 202). Rs. 303). Rs. 354). Rs. 15
An increase in the growth rate of the nominal money supply results in1). Lower rate of inflation2). Higher rate of inflation3). Lower interest rates4). Currency appreciation
Which of the following factors can decrease biological oxygen demand (BOD) of any freshwater ecosystem?1). Large amount of sewage2). Lrage biomass accumulation and?decomposition3). Increased organic matter pollution?4). Low temperature and low plant?biomass accumulation
If one more baker is hired the output of a bakery will increase from 1250 breads to 1400 breads per day, but then the bakery will have to reduce the price ofthe bread from Rs 15 to Rs 14 per unit to sell the additional output, the marginal revenue product of the last baker is _______.1). Rs 8502). Rs 1503). Rs 19604). Rs 1875
If quantity of good X demanded increases from 2300 to 2700 when price of good Y increases from Rs. 45 to Rs. 55, find Arc Cross elasticity of demand?1). 42). 1,253). 0,254). 0,8
Match the characteristics with their market structure:(b) Firm has control over quantity of output but it must take into account reactions of competitors1). (a) Pure Monopoly, (b) Oligopoly2). (a) Pure Monopoly, (b) Monopolistic Competition3). (a) Pure Competition, (b) Oligopoly4). (a) Monopolistic Competition, (b) Pure Competition
If demand curve for trekking boots is D = 67500 - 18P and supply curve is S = 22500 + 12P, find the equilibrium Price?1). 15002). 7503). 22504). 500
If price of an article decreases from Rs 600 to Rs 500, when quantity demanded increases from 10000 units to 12000 units. Find point elasticity of demand?1). -1.22). 1.23). -1.54). 1.5
If price of an article decreases from Rs 40 to Rs 30, quantity demanded increases from Q1 units to 7500 units. If point elasticity of demand is1). 9000 units2). 4500 units3). 10500 units4). 6000 units
Find arc elasticity of demand, if quantity demanded falls from 4600 to 4200 when price of the item is increased from Rs 960 to Rs 1000?1). -2.232). -2.093). 2.234). 2.09

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment