If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A. the firm should increase output.
B. the firm should reduce output.
C. the firm is maximizing profits.
D. we do not know if the firm should increase or reduce without more information.
Answer: B
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An insurance company offering discounts to students with high grades in school an example of:
A. screening. B. signaling. C. statistical discrimination. D. building a reputation.
Income inequality is indicated by a Lorenz curve that:
a. bows up, away from the line of income equality. b. bows down, away from the line of income equality. c. lies parallel to the line of income equality. d. coincides with the line of income equality. e. approaches the vertical axis.
A consumer will consume the combination of goods at the crossing point of a budget line and indifference curve
a. True b. False Indicate whether the statement is true or false
In order to gain competitive advantage, it would be more important to encourage a company to invest in ____ factors of production.
Fill in the blank(s) with the appropriate word(s).