When MR < MC for a firm, the firm should
A) reduce its level of output.
B) stay at the same level of output.
C) stop producing.
D) increase output, unless P < AVC.
A
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The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. What is its profit from non-students under the single price policy?
A. $300 B. $360 C. $450 D. $540
A union is striking a steel company, and then, to put more pressure on the steel company, also promotes a boycott against an auto company that buys steel from the steel company. This latter action is
A) a sympathy strike, and is illegal under the Taft-Hartley Act. B) a secondary boycott, and is legal under the Landrum-Griffin Act. C) a secondary boycott, and is illegal under the Taft-Hartley Act. D) a sympathy strike, and is legal under the Wagner Act.
Refer to Figure 2.1. At point D, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.