If a firm is producing an output level for which the market price exceeds the firm’s marginal cost,
a. consumers would be willing only to pay a price lower than what it costs the firm to produce another unit.
b. consumers would be willing only to pay a price equal to what it costs the firm to produce another unit.
c. consumers would be willing to pay a price greater than what it costs the firm to produce another unit.
d. consumers would be willing only to pay a price equal to or lower than what it costs the firm to produce another unit.
c. consumers would be willing to pay a price greater than what it costs the firm to produce another unit.
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When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap. B) a below-full-employment equilibrium. C) a recessionary gap. D) None of the above answers are correct.
Which of the following are not methods of dealing with externalities?
a. relying on voluntary compliance b. creating new property forms c. taxing the output of industries that pollute d. creating legal environmental standards e. increasing public spending on cleanup/reduction
The largest component of the U.S. GDP is:
A. NX B. C C. I D. G
One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to:
A. Guarantee cash assistance for poor families B. Set a 5-year lifelong limit on welfare benefits C. Get the Federal government to pay more of the cost of welfare D. Make welfare benefits more equitable among those receiving them