If marginal revenue exceeds marginal cost, profit maximizers should
a. reduce output until they are equal
b. increase output until they are equal
c. increase output until profits are zero
d. decrease output unless profits are zero
e. maintain current output
B
You might also like to view...
Are there many good substitutes for water?
A) No, because living creatures die without water. B) No, even though there are many substitute ways to obtain water. C) Yes, because water is recycled by nature. D) Yes, because water is used for so many different and trivial purposes. E) Yes, because water may be found in many forms other than its pure form.
State and local government spending has _______________ during the last four decades.
a. decreased b. remained flat c. increased d. stabilized
When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as the
a. marginal revenue multiplied by the wage. b. marginal product of labor multiplied by the wage. c. marginal product of labor divided by the wage. d. None of the above is correct.
To an economist, the four factors of production are
A. Land, labor, capital, and entrepreneurship. B. Labor, workers, profit, and services. C. Entrepreneurship, machinery, workers, and profit. D. None of the choices are correct.