In the short run, if the marginal cost exceeds the marginal revenue, a perfectly competitive firm should:
a. raise the level of output to maximize profit.
b. keep the level of output constant.
c. raise the level of output to minimize loss.
d. reduce the level of output to minimize loss.
e. shut down.
d
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The imposition of a quota ________ domestic production, ________ imports, and ________ domestic purchases
A) decreases; increases; decreases B) increases; decreases; increases C) increases; decreases; decreases D) decreases; decreases; decreases E) increases; increases; increases
The Fed would use a reverse repo when they:
A. forecast a permanent increase in the demand for monetary base. B. forecast a permanent decrease in the demand for monetary base. C. want to temporarily increase the monetary base. D. want to temporarily decrease the monetary base.
According to the textbook author, who is most likely to do well as a result of the information revolution?
A. Manufacturing workers B. Authors of textbooks C. College graduates in general D. Designers of algorithms
"Ordinary least squares" is a technique that can be used to
A) identify the best model. B) determine which variables in a model are endogenous and which are exogenous. C) obtain a bar graph showing successive quarterly increases in output. D) obtain a line describing consumption behavior in the real world. E) determine the direction of causation between consumption and income.