Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. decrease production.
B. lower its price.
C. raise its price.
D. increase production.
Answer: D
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A. -1.16. B. -2.27. C. -1.60. D. -.63.
An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________
A) does not change; rightward B) increases; rightward C) decreases; leftward D) decreases; rightward E) increases; leftward
A newly-issued eighteen-year Treasury security can be stripped into __________ separate zero coupon securities
A) two B) eighteen C) thirty-seven D) seventy-three
The principal effect of unemployment insurance on the entire U.S. economy is
a. that it spreads the costs of unemployment. b. that it eliminates the social costs of unemployment. c. that it reduces the social costs of unemployment. d. the reduction in the federal debt.