When the marginal cost of a price-taker firm is more than the market price of its product, the firm should:
a. expand output.
b. reduce output.
c. maintain output.
d. charge more than the market price.
a
You might also like to view...
Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week and is funded through listener donations
If Michigan Radio suffers from the free-rider problem then the market would provide an ________ quantity of the public good. A) efficiently small B) efficiently large C) inefficiently small D) inefficiently large
An externality is any activity for which an individual firm or consumer does not take into account all
A) of the ramifications of its actions on others. B) associated costs. C) associated benefits. D) associated costs and benefits.
If a firm in an industry experiences very high fixed costs and constant marginal cost, it is a good candidate for a natural monopoly
Indicate whether the statement is true or false
Assume that a firm's total revenue is less than its total cost for the level of output it is producing. In the short run, this firm should: a. expand output
b. contract output. c. shut down. d. There is not enough information to answer the question.