If a firm finds itself at an output level where MR < MC, then the firm
A. should shut down, since it is losing money.
B. should decrease output.
C. should increase output.
D. should raise the price of its product.
Answer: B
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Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.
If aggregate output is below its equilibrium level ________
A) there is an excess demand for goods B) actual output is below planned expenditure C) firms will tend to replenish their low inventories driving output up toward equilibrium D) all of the above E) none of the above
The demand curve for capital
a. is vertical. b. is horizontal. c. is derived from households' decisions concerning saving and spending. d. reflects the marginal productivity of capital.
We call the situation in which the government makes a problem worse when it attempts to deal with it a(n):
A. government failure. B. deadweight loss. C. nudge. D. incentive compatibility problem.