If current output is less than the profit-maximizing output, then the next unit produced

A) will decrease profit.
B) will increase cost more than it increases revenue.
C) will increase revenue more than it increases cost.
D) will increase revenue without increasing cost.
E) may or may not increase profit.


C

Economics

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Which of the following statements is (are) correct? The equilibrium interest rate is the rate that

a. equates the supply of loanable funds with the demand for loanable funds b. equates new saving with investment plus the bond-financed government surplus c. equates private savings with investment d. All of the above e. None of the above

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Vertical contracts between manufacturers and retailers often aim to

a. Incentivize the retailers to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Serve as a "signal" of the manufacturer's belief of the likely success of his product c. Reimburse the retailer for the cost of managing an extended inventory d. All of the above

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Explain the concept of 'lender of last resort'. What is discount rate?

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In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?

a. Decrease government spending. b. Raise the discount rate for banks. c. Raise tax rates. d. Reduce reserve requirements. e. All of the above

Economics