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. raise its price.
B. decrease production.
C. lower its price.
D. increase production.
Answer: D
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Consequences of the European Monetary Union include ________
A) a global financial crisis in 2007-2008 B) tightening of capital controls in several economies C) convergence of unemployment rates across the member economies D) consistent monetary policy across the member economies
In economics, the term "surplus" means an excess quantity supplied
a. True b. False Indicate whether the statement is true or false
Suppose that MPL = 100 and MPK = 80. If W = 25 and R = 20, then a firm:
A. is producing its output at the lowest possible cost. B. could reduce costs by employing more labor and less capital. C. could reduce costs by employing more capital and less labor. D. could minimize costs by employing more of both inputs.
How much is the percentage of income received by the middle three quintiles on line S?
