A firm in monopolistically competitive market is producing 30 units of output. At this level of production, the firm charges $50 per unit. Its marginal cost is $24 and marginal revenue is $24, and average cost is $20 per unit. Given this information, this firm should
A. maintain its current output, since it is maximizing profits.
B. decrease output to increase profits.
C. increase output to increase profits.
D. shut down.
Answer: C
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When a firm's average revenue falls, the marginal revenue also falls and is less than the average revenue
a. True b. False Indicate whether the statement is true or false
If a union sets the wage rate to maximize the total wage receipts of its members, the price elasticity of demand for labor would be
A) zero. B) numerically equal to 1. C) finite, but greater than -1. D) positive, but less than 1.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.
Traditional sports gambling is legal
A. everywhere. B. as long as it is on the internet. C. nowhere. D. in some states (Nevada, Montana, Delaware, and Oregon) and illegal in others.