A unit of output whose production and sale adds less to cost than it generates in additional revenue is
A) a profitable unit to produce and sell if marginal cost declines with additional output.
B) a profitable unit to produce and sell if total receipts exceed total costs.
C) a profitable unit to produce and sell unless it must be sold at a price below average unit cost.
D) a profitable unit to produce and sell.
D
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The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is maximized when it produces
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.
A monopoly firm engaged in international trade will
A) equate marginal costs with marginal revenues in both domestic and foreign markets. B) equate average to local costs. C) equate marginal costs with foreign marginal revenues. D) equate marginal costs with the highest price the market will bear. E) equate marginal costs with the relative world prices.
Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?
A) an increase in the productivity of workers B) an increase in demand for the product C) a decrease in the price of the product D) an increase in the wage rate
If the price level increased from 200 to 250, then what was the inflation rate?
a. 50 percent b. 25 percent c. 20 percent d. None of the above is correct.