Marginal profit is negative when:
A) marginal revenue is negative.
B) total cost exceeds total revenue.
C) output exceeds the profit-maximizing level.
D) profit is negative.
C
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Suppose a firm hires labor in a competitive labor market. When will hiring more labor increase the firm's profit?
a. When the marginal revenue product of labor exceeds the wage rate. b. When the marginal product of labor is positive. c. When the marginal labor cost is falling. d. When the wage rate is less than the firm's marginal cost of production.
A recession begins with a(n) ________ in spending by firms on capital goods and a(n) ________ in spending on durable goods by households
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Your economics professor has announced that he or she will assign final grades as follows: the top 20 percent of students will get an A, the bottom 20 percent of students will get an F, and everyone else will get a C. This grading scheme generates a positional externality because:
A. each student's final grade depends on his or her relative standing. B. studying requires both time and effort. C. society as whole will be better off when people are educated. D. students will study hard no matter how the professor assigns final grades.
The graphic on family income distribution above
A) indicates that median family income is $17,000 B) indicates that mean family income is below median family income C) indicates that median family income is $66,000 D indicates that a large percentage of families make more than $250,000 per year