A company finds that at the output level at which marginal cost equals marginal revenue, TC = $500, TVC = $400, and TR = $450. Your advice to the firm is
A) shut down, as TC > TR.
B) reduce output to reduce the cost of production.
C) increase output to reduce the per unit cost of production.
D) continue to produce because loss is less than TFC.
D
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Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months
A) your marginal cost of studying economics for an hour must have exceeded its marginal benefit. B) the marginal cost of studying economics must have fallen. C) your marginal benefit from studying economics an hour must have been greater than its marginal cost. D) the opportunity cost of studying economics must have risen.
Refer to the table below. What is the probability of selling exactly 24 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.20
B) 0.90
C) 0.00
D) 0.10
One way fiscal policy affects aggregate demand is:
A. directly through government spending. B. directly through tariffs. C. directly through taxation. D. All of these are true.
The slope of the consumption function reflects the
a. average propensity to consume b. the ratio of income to consumption c. marginal propensity to consume d. level of autonomous consumption e. level of income