The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to reduce output as long as marginal revenue
A. is positive.
B. is greater than marginal cost.
C. is less than marginal cost.
D. equals marginal cost.
Answer: C
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In the short run, a perfectly competitive firm will shut down if
A) it incurs any economic loss. B) price equals average cost. C) total revenue is less than total variable cost. D) total revenue is less than total fixed cost.
Fogel (1964) came up with two estimates of social savings (? and ?). What do they represent?
(a) The level of industrial productivity using railroads and the level not using railroads (b) The lowered benefit of transport for agricultural goods using railroads and the lowered benefit of transport for all goods and passengers using railroads (c) The lower output of the U.S. economy using transportation financed through domestic capital and foreign capital (d) The cost of shipping goods by railroads and the cost of shipping by waterways and wagon transport
If the spending multiplier is equal to 5, then a $1 initial increase in investment spending will lead to a:
a. 5 percent decrease in real GDP. b. 5 percent increase in real GDP. c. $5 decrease in real GDP. d. $5 increase in real GDP. e. 0.05 percent increase in real GDP.
Sustained long-term economic growth comes from decreases in worker productivity, which essentially means how well we do things.
Select whether the statement is true or false. A. True B. False