If output is increased beyond the point where total profit is maximized,
a. marginal profit will be zero.
b. marginal profit will be negative.
c. marginal profit will be positive.
d. MR > MC.
b
You might also like to view...
For most goods and most people, marginal utility probably: a. continues to increase as larger quantities are purchased. b. declines as consumption increases
c. plummets after the first few units but soon begins to rise. d. is negative after the first unit of a good is purchased.
If price goes up 20 percent and quantity demanded declines by 10 percent, total revenue will rise
a. True b. False Indicate whether the statement is true or false
Suppose government spending rises by $120 billion. It follows that if private expenditures
A) rise by $120 billion, complete crowding out exists. B) fall by $100 billion, incomplete crowding out exists. C) remain unchanged, complete crowding out exists. D) rise by more than $120 billion, complete crowding out exists. E) b and c
Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. MC curve that lies above the ATC curve. B. AVC curve to the right of its minimum. C. MC curve that lies above the AVC curve. D. ATC curve to the right of its minimum.