If a firm's marginal revenue is below its marginal cost, an increase in production will usually:
a. increase profits.
b. leave profits unchanged.
c. decrease profits.
d. increase marginal revenue.
c
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In the market for resources, demand and supply:
a. do not behave in the same way as they do in product markets. b. behave in exactly the same way as they do in product markets. c. curves usually do not intersect at equilibrium. d. are both controlled by firms. e. are both controlled by households
Does research into new technologies create a positive externality or does it create a negative externality?
Refer to the following game.Firm AFirm B??Low PriceHigh Price?Low Price(9,10)(8,15)?High Price(-7,10)(11,11)What are the Nash equilibrium strategies for firm A and firm B respectively?
A. (low price, high price) B. (high price, high price) C. (low price, low price) D. (low price, low price) and (high price, high price)
Which of the following statements can used to describe efficiency?
I. Efficiently using resources means that producers make the highest profits possible. II. Using resources efficiently means that we cannot produce more of one good without producing less of another good that has a higher value. III. Resource use is efficient when we produce goods and services that people value most highly. A) I only B) I and II C) II and III D) I, II and III