If a firm in a perfectly competitive market is producing at a level of output where marginal costs are less than marginal revenue, its profit:
A. must be positive.
B. are maximized.
C. will increase if it produces more.
D. will increase if it produces less.
Answer: C
You might also like to view...
If you must make a choice about consuming two apples, three oranges, or one candy bar, the opportunity cost of the two apples is the candy bar plus the three oranges
a. True b. False Indicate whether the statement is true or false
Which of the following sellers is most able to perfectly price discriminate?
A) a college or university B) the post office C) a clothing store D) a grocery supermarket
It is costly to hold money because
A. in doing so, one sacrifices interest income. B. bond prices are highly variable. C. the rate at which money is spent may decline. D. deflation may reduce its purchasing power.
In the above figure, if the interest rate is negatively related to household expenditures for any given level of household income, an increase in the interest rate will
A) shift the line vertically upward. B) shift the line vertically downward. C) make the line negatively sloped. D) cause no change in the line's position.