Suppose that the marginal benefit of an activity is less than the marginal cost, then:
A. the net benefit would be increased by reducing the amount of the activity.
B. the net benefit would be decreased by reducing the amount of the activity.
C. the net benefit would be increased by increasing the amount of the activity.
D. there can be no marginal improvement by changing the amount of the activity.
A. the net benefit would be increased by reducing the amount of the activity.
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A shift of the demand curve to the left represents
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
If a firm's marginal revenue exceeds its marginal cost, it should
a. raise its price b. advertise more c. lay off a few employees d. cut back its overhead e. increase its output
Which statement is false?
A. Compared to 30 years ago, there is more sentiment in the U.S. for protection against the import of foreign goods. B. The basis for international trade is specialization. C. Our balance of trade has been negative since the early 1900s. D. None of these statements are true.
Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not
Indicate whether the statement is true or false