In general, if a firm is producing at a level at which its expected marginal revenue is ________ its expected marginal cost, it should ________ production to maximize ________.
A) more than; increase; actual profit
B) less than; decrease; expected profit
C) more than; decrease; expected profit
D) less than; increase; expected profit
B) less than; decrease; expected profit
You might also like to view...
What appears on the asset side of a bank's balance sheet?
A. excess reserves B. loans. C. required reserves. D. all of the above
Use the following graph to answer the next question.
If current output is Q1 and full-employment output is Q2, then in the long run the short aggregate supply schedule is ________.
A. AS1 B. AS2 C. AS3 D. AD
The currency exchange rate is the rate at which one nation's currency can be exchanged for another
Indicate whether the statement is true or false
If a product has an inelastic demand, then:
a. there is probably a long time period under consideration. b. as price increases, total revenue to producers decreases. c. an increase in the price will decrease total consumer expenditures. d. there are probably many complements for the good. e. there are probably few substitutes for the good.