It's logical, it's a rule of thumb, it's an economic guideline: As long as MR < MC, and the firm responds by decreasing the quantity it produces,
a. profit will equal zero
b. profit will increase
c. profit will decrease
d. profit will remain unchanged
e. the firm will minimize loss
B
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If a check written on one bank is deposited in another bank
A) new reserves are created for the banking system. B) the money supply decreases. C) the money supply remains unchanged. D) the money supply increases.
Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as
A) economic inefficiency. B) moral hazard. C) market failure. D) bad faith.
When the expenditure approach is used to measure GDP, the major components of GDP are
What will be an ideal response?
Referring to Figure 18.3, the effect of a decrease in Japanese prices is represented by a movement from point:
A. d to a. B. c to b. C. c to d. D. d to c.