A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as
a. it lowers the firm's unit costs.
b. it lowers the firm's marginal cost.
c. it adds more to revenue than it adds to cost.
d. there is additional plant capacity to produce.
C
You might also like to view...
Last year, after Shirley received a 14 percent pay increase, she increased the quantity of pork chops she purchased by 6 percent. Hence, her income elasticity of demand for pork chops equals
A) 0.43. B) -0.43. C) 2.33. D) -2.33
The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost
Indicate whether the statement is true or false
On the graph above, if output is falling, while the quantity demanded is rising, the economy may be at a point on ________
A) the aggregate supply curve above the aggregate demand curve B) the aggregate supply curve below the aggregate demand curve C) the aggregate demand curve above the aggregate supply curve D) the aggregate demand curve below the aggregate supply curve E) none of the above
The short-run average total cost curve is U-shaped because average fixed costs ________ and average variable costs ________ eventually as quantity produced increases.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease