If a firm increases output when MR < MC, then:
a. profit will equal zero.
b. profit will increase.
c. profit will decrease.
d. profit will remain the same.
e. the firm is minimizing losses.
c
You might also like to view...
How much is a bond that pays $40 in coupon payments for 2 years and $1,000 at the end of the fourth year worth if the interest rate is 4%?
A) $844.56 B) $924.56 C) $1,000 D) $1,123.2
Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade
a. True b. False Indicate whether the statement is true or false
Kahneman and Tversky are correct about "mental accounts," household budgeting
A. should have no effect on spending. B. should help families cut back on spending. C. will encourage families to earn more money than they would if they did not budget. D. leads families to spend more than if they did not budget.
At low levels of output, the economy can expand with little or no increase in the overall price level because
A. people will be expecting the price level to fall. B. at low levels of output the aggregate supply curve is negatively sloped. C. there is excess supply so prices are kept low. D. firms likely hold excess labor and capital, and production can be increased without causing input prices to increase.