Which of the following statements is true
a. A firm should increase quantity as long as average cost is greater than price
b. A firm should increase quantity as long as price is greater than marginal cost
c. A firm should increase quantity as long as price is higher than average cost, regardless of the marginal cost
d. A firm should increase quantity as long as marginal cost is greater than price
b
You might also like to view...
An individual pays $100 every month as rent for an apartment, and his monthly opportunity cost of commuting from the apartment to his place of work is $40. Which of the following statements is then true?
A) The direct cost of renting the apartment is $140. B) The indirect cost of renting the apartment is $140. C) The direct cost of renting the apartment is $40, whereas the indirect cost of renting the apartment is $100. D) The direct cost of renting the apartment is $100, whereas the indirect cost of renting the apartment is $40.
The aggregate supply curve shows the relationship between the:
a. The Consumer Price Index and the level of output. b. Real risk-free interest rate and expected inflation. c. The nation's average price level (i.e., the implicit price index) and the level of output. d. Nominal exchange rate and level of output. e. None of the above.
Which of the following working conditions are common at sweatshops?
A. a lack of guards on sewing and cutting machines. B. restricted bathroom break times. C. blocked aisles and fire exits. D. All of the answers are correct.
Adam Smith created the theory of comparative advantage
Indicate whether the statement is true or false