Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output.
b. contract output.
c. maintain output.
d. There is insufficient information to answer the question.
a
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Which of the following will shift the aggregate demand curve outward?
a. tax cuts and government spending cuts b. tax increases and government spending increases c. tax cuts and government spending increases d. tax increases and government spending increases
The price index was 128 in 2013, and the inflation rate was 24 percent between 2012 and 2013 . The price index in 2012 was
a. 104.0. b. 103.2. c. 158.7. d. 152.0.
Why is the demand curve for labor downward-sloping? What causes the labor demand curve for a firm to shift?
What will be an ideal response?
Suppose output for a simple production process is given by Q = K + L, where K denotes capital, and L denotes labor. The price of labor is $2 per unit and the price of capital is $4 per unit. What would be the minimum costs of producing 10 units of output?
A. $10 B. $40 C. $20 D. It is impossible to say with the information given