For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $7 and a marginal cost of $10 . It follows that the
a. production of the 100th unit of output increases the firm's profit by $3.
b. production of the 100th unit of output increases the firm's average total cost by $7.
c. firm's profit-maximizing level of output is less than 100 units.
d. production of the101st unit of output must increase the firm's profit by more than $3.
c
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According to your authors, the "boom" phase of the so-called "business cycle" is
A) caused by an expansionary increase of the money supply. B) a systematic accumulation of mistakes among businesses and households across the economy. C) undertaken because business planners miscalculate the expected profitability of their new ventures. D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle. E) described correctly by all of the above statements.
What is mechanism design? Give at least two examples
What will be an ideal response?
When a monopoly is maximizing its profits,
A) MR > MC. B) MR < MC. C) dMR/dQ > dMC/dQ. D) dMR/dQ < dMC/dQ.
State two characteristics of the long-run equilibrium under perfect competition