For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue decreases, the profit-maximizing quantity ________.
A) decreases
B) increases exponentially
C) does not change
D) increases
A) decreases
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If Mario's pizza states that it will meet any competitor's price on a 12 inch, one topping pizza, this is an example of ________.
A) a high barrier to entry B) a preannouncement C) price leadership D) a meet-the-competition clause
If bicycles can be sold for $100 each, and the marginal product of hiring a third worker is 2 bicycles, then the marginal revenue product from hiring that worker is
a. 2 bicycles b. $200 c. $100 d. $1,000 e. $300
By reducing income taxes, more money is put into the hands of people who will spend part of it on more goods and services. This shifts the aggregate demand curve outward
Indicate whether the statement is true or false
For all practical purposes, a nation's monetary base is controlled by:
a. The government, financial institutions, and the central bank. b. The central bank. c. The International Monetary Fund and World Bank. d. Individuals and financial institutions, by means of their preferred asset ratios, and the central bank. e. No one because the monetary base is a free market quantity that is determined, like many macroeconomics variables, by the forces of supply and demand.