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Consider a firm in a competitive market with market price p. Which of the following statements are true, which are false? In its optimization problem, a profit-maximizing firm takes into account the effect of the quantity O True O False it produces on the market price. In the long run it is optimal for the firm to produce the quantity q for which the difference between True False the marginal costs of producing q and the average costs of producing q is maximized. In the short run the firm makes a positive profit by producing a True False quantity q if the average variable costs of producing q are smaller than p.

Consider a firm in a competitive market with market price p. Which of the following statements are true, which are false? In its optimization problem, a profit-maximizing firm takes into account the effect of the quantity O True O False it produces on the market price. In the long run it is optimal for the firm to produce the quantity q for which the difference between True False the marginal costs of producing q and the average costs of producing q is maximized. In the short run the firm makes a positive profit by producing a True False quantity q if the average variable costs of producing q are smaller than p.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Consider a firm in a competitive market with market price p. Which of the following statements are true, which are false? In its optimization problem, a profit-maximizing firm takes into account the effect of the quantity it produces on the market price. O True O False In the long run it is optimal for the firm to produce the quantity q for which the difference between True False the marginal costs of producing q and the average costs of producing q is maximized. In the short run the firm makes a positive profit by producing a True False quantity q if the average variable costs of producing q are smaller than p.
Transcribed Image Text:Consider a firm in a competitive market with market price p. Which of the following statements are true, which are false? In its optimization problem, a profit-maximizing firm takes into account the effect of the quantity it produces on the market price. O True O False In the long run it is optimal for the firm to produce the quantity q for which the difference between True False the marginal costs of producing q and the average costs of producing q is maximized. In the short run the firm makes a positive profit by producing a True False quantity q if the average variable costs of producing q are smaller than p.
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