In a perfectly competitive market, if a firm finds it is producing an amount of output such that its marginal cost exceeds its price, it will
A) immediately shut down for the short run.
B) be maximizing profits.
C) increase its output to increase its profit.
D) decrease its output to increase its profit.
D
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In the figure above, if the government gives a voucher equal to $3,000 per year to each college student, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 14 million per year
The Fed increases the money supply by buying securities for $300 million. The impact of this increase, in the long-run, would be to
A. raise the average price level and increase the level of real GDP. B. raise the average price level, but real GDP (output) would stay the same. C. raise the real supply of loanable funds, lower the interest rate, and increase the demand for output. D. raise the real supply and demand for loanable funds with an increase in the interest rate.
Which of the following assets is most liquid?
a. Funds in a checking account. b. A car. c. A home. d. A municipal bond.
Transferable pollution rights allow a given level of pollution reduction to be achieved: a. at zero cost
b. at higher cost than compliance standards. c. at lower cost than compliance standards. d. at higher cost than a system of pollution taxes.