A firm sees its marginal revenue increase by $20 and marginal cost increase by $15 when it produces its 1000th product. This implies
a. the production of the 1000th unit of output increases the firm's profit by $5.
b. The firm is past its profit maximizing output
c. We cannot say much on the profitability of the firm
d. Producing the 1000th item will in fact decrease the overall firm's profits.
a
You might also like to view...
In the classical system, the quantity of money
a. determines the price level and, for a given real income, the level of nominal income. b. does not affect the equilibrium values of output, employment, and the interest rate. c. affects the equilibrium values of output, employment, and the interest rate. d. Both a and b e. Both a and c
The amount of money consumers pay producers is
A. the area under the demand curve from the origin to the quantity purchased. B. the area under the demand curve but above the price line from the origin to the quantity purchased. C. the price times the quantity or the rectangle whose height is the price and base is the quantity purchased. D. the area under the supply curve from the origin to the quantity produced.
A ceiling imposed by a country on the quantity of a good or service it will import is called a
A. quota. B. tariff. C. non-tariff barrier. D. trade embargo.
The Fed uses open market operations to
A. determine the discount rate. B. determine the required reserve ratio. C. determine the federal funds rate. D. buy or sell government securities.