A price-searcher firm will expand output until
a. marginal revenue falls to equal the rising marginal cost.
b. marginal revenue rises to equal the falling marginal cost.
c. marginal revenue falls below marginal cost.
d. marginal cost rises above marginal revenue.
A
You might also like to view...
If the price of the good measured along the vertical axis increases without a change in the price of the good measured along the horizontal axis, the consumer's budget constraint:
A) pivots rightward without a change in the intercept on the horizontal axis. B) pivots leftward without a change in the intercept on the horizontal axis. C) shifts to the right. D) shifts to the left.
A key issue in the presidential election of 2012 between President Obama and Mr. Romney concerned tax rates. President Obama favored increasing taxes, especially on the rich. As a result of a tax increase
A) the aggregate demand curve shifts leftward. B) the aggregate demand curve shifts rightward. C) the aggregate supply curve shifts leftward. D) the aggregate supply curve shifts rightward.
If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A. could be greater than or less than B. is less than C. is equal to D. is greater than
The Leontief production function implies:
A. L-shaped isoquants. B. convex-shaped isoquants. C. straight-line isoquants. D. A positive MRTS.