When MFC < MRP, a firm in a competitive market will
A. earn fewer profits.
B. layoff workers.
C. stop hiring more workers.
D. hire more workers.
Answer: D
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A price ceiling disrupts markets because the price is set too low
Indicate whether the statement is true or false
In the long run the prices charged by a firm in a competitive price-searcher market will be
a. high enough to provide profits to the firm. b. so low that many firms will drop out of the industry. c. equal to marginal cost. d. equal to average cost, including the opportunity cost of capital.
Economists define capital as the
a. accumulation of goods produced in the past that are being used in the present to produce new goods and services. b. goods and services that are most affected by changes in technology. c. factors of production that can be rented by firms. d. factors of production that can be purchased by firms.
Managerial economics:
A. has little to say about day-to-day decisions. B. is the study of how to get rich in the stock market. C. is not relevant for managers of not-for-profit groups. D. is valuable to the coordinator of a shelter for the homeless.