The level of an economic activity should be increased to the point where
a. Marginal benefits equal to zero
b. Marginal costs of the investment are less than marginal benefits of the investment
c. Marginal benefits are greater than marginal costs
d. Marginal costs are equal to marginal benefits
d
You might also like to view...
Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)
A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) a massive crop failure.
If the government provides universal health insurance, what screening process will the government need?
A) It won't need a screening test. B) It will only give health insurance to non-smokers. C) It won't use screening tests but it will use statistical discrimination. D) It won't use screening tests but it will use signals.
The more broadly a good is defined
a. the more substitutes it has, so demand will be more price-elastic b. the less substitutes it has, so demand will be more price-elastic c. the more substitutes it has, so demand will be less price-elastic d. the less substitutes it has, so demand will be less price-elastic e. has no effect on the good's price elasticity of demand
A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30 . Which of the following should the firm do to increase profit?
a. Raise price and lower output. b. Lower price and lower output. c. Raise price and raise output. d. Lower price and raise output. e. Lower output, but leave price unchanged.