Whenever marginal revenue is greater than marginal cost, a profit-maximizing firm should reduce its output
a. True
b. False
Indicate whether the statement is true or false
False
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Choices that are best for the individuals that make them are choices in pursuit of
A) the social interest. B) efficiency. C) incentives. D) self-interest. E) equity.
In the short run,
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. no production occurs.
The price system is sometimes criticized in that it
A. leads to greater efficiency. B. results in allowing the rich get a disproportionate say in what goods and services are produced. C. coordinates activities without the need for planning by government agencies. D. relies too heavily on input-output analysis.
A natural correction to employer discrimination in market economies is the
a. threat of judicial review. b. profit motive. c. political process. d. union movement.