CH 13 Flashcards
(8 cards)
1
Q
A perfectly competitive, well‐functioning market can
A
Deliver goods and services at wide scale and at low prices
2
Q
A buyer or a seller is a price
taker if
A
they cannot affect the market price
3
Q
When goods are
standardized
A
they are interchangeable.
4
Q
The profit‐maximizing quantity occurs at output level where:
A
MR = MC
5
Q
Increase production as long as
A
MR > MC
6
Q
Profit =
A
(p – ATC) × Q
7
Q
If positive economic profits exist:
A
P > ATC.
8
Q
If negative economic profits exist:
A
P < ATC.
