If SnuggleTight, a pillow-making firm in Long Island, NY, incurs losses by producing where its MR = MC, then at least in the short run, it should
a. shut down
b. increase output
c. decrease output
d. remain at that output level only if P > AVC
e. remain at that output level only if P > ATC
D
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You would be willing to pay a maximum of $1000 for an airplane ticket to London, UK during the summer, and you can buy an airplane ticket for $890. Your consumer surplus is:
A) $190. B) $110. C) $100. D) $90.
You are the sales manager for a software company and have been informed that the absolute value of the price elasticity of demand for your most popular software is less than 1. To increase total revenues from that product, you should
A. hold the price of the software constant. B. increase the supply of the software. C. increase the price of the software. D. decrease the price of the software.
A public franchise
A) is an unregulated monopoly necessary for the public good. B) is a government designation that a private firm is the only legal producer of a good or service. C) is a corporation that is owned by stockholders. D) results from ownership of a key raw material.
The demand curve for any input is the downward-sloping portion of its marginal revenue product curve.
Answer the following statement true (T) or false (F)