If marginal revenue is greater than marginal cost, the firm should
A. raise price.
B. raise marginal revenue.
C. decrease its rate of output.
D. increase its rate of output.
Answer: D
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Costumarily, economists classify resources in to these major groups:
What will be an ideal response?
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
If the firm represented in the diagram is currently producing and selling Q a units, what is the price charged?
A. P0 B. P1 C. P2 D. P3
When speed boat sales rise, the city of Las Vegas takes in more revenue. The omitted common variable between these outcomes is likely to be:
A. childhood obesity. B. prices of Las Vegas flights. C. increased disposable income. D. life jacket sales.