Which of the following is not a way firms try to maximize profits by?O productioncostsdemandO supplyQuestion 2Firm behavior determines market structure.O TrueO FalseQuestion 3The profit maximizing condition is:O marginal revenue = marginal benefitO marginal revenue = marginal costOmarginal revenue = average total costmarginal revenue average variable cost

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Economics

Which of the following is not a way firms try to maximize profits by? O production costs demand supply Question 2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...

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If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease production O b. increase production O c. keep the production level constant O d. keep the prices constant
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Suppose a firm is producing an output level for which price exceeds average total cost. From this information, which of the following can be deduced? 1. the firm is maximizing profits II.the firm is earning positive profits III. the firm is a price taker IV. the firm faces a downward sloping demand curve Select one: O a. II and III only. O b. ll only O c. II and IV only O d. I and III only O e.land II only