When MR < MC for a firm, the firm should
A) reduce its level of output.
B) stay at the same level of output.
C) stop producing.
D) increase output, unless P < AVC.
Answer: A
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Think of at least nine examples, three of each, that display a positive, negative, or no correlation between two economic variables. In each of the positive and negative examples, indicate whether or not you expect the correlation to be strong or weak
What will be an ideal response?
The Bureau of Labor Statistics measures unemployment by surveying:
A. every household at least once a year. B. a sample of about 60,000 households every month. C. a sample of about 60,000 employers every month. D. every business at least once a year.
When a tax is imposed on the buyers of a good, the demand curve shifts
a. downward by the amount of the tax. b. upward by the amount of the tax. c. downward by less than the amount of the tax. d. upward by more than the amount of the tax.
The effects of the national health care program on goods and services markets will
A) increase the marginal cost of the firm. B) increase the quantity produced of the firm. C) consumers will pay lower prices for many goods and services. D) decrease the quantity demanded for all goods and services.