Exhibit 7-5 A firm's MR and MC curves
?
In Exhibit 7-5, a firm is currently producing 40 units of output. What would you advise this firm to do?
A. Shut down.
B. Increase output.
C. Decrease price.
D. Decrease output.
Answer: B
You might also like to view...
The absence of clear property rights
A) is common in many developing nations. B) encourages creative destruction. C) is caused by capital deepening. D) all of the above.
(Consider This) The tragedy of the commons occurs primarily:
A. where government subsidies are present. B. when incentives to preserve are strongest. C. where property rights are lacking. D. on privately held lands.
What characteristic defines something as money?
A. an asset that earns interest B. a medium of exchange widely accepted in an economy C. notes you can deposit in a savings account D. assets declared by the government to be of value
A tax rebate, which is expected to be offered in this and all future years, will
A) have a small positive effect on consumption and aggregate demand. B) have no effect on consumption and aggregate demand. C) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. D) increase aggregate supply and aggregate demand.