Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $12; AVC = $10; MC = $15; MR = $13. The firm should
A) decrease output.
B) increase output.
C) increase price.
D) change nothing.
A
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When the Fed decreases the discount rate, it makes it easier for banks
a. to decrease their reserves by borrowing from the Fed, causing the money supply to shrink b. to increase their reserves by borrowing from the Fed, causing the money supply to grow c. to protect against the inevitable accompanying increase in the legal reserve requirement d. to convert its loans into deposits e. to write off its obligations to the Fed
Symmetric information generally leads to efficient allocations of resources
a. True b. False Indicate whether the statement is true or false
In the TruLite boxing department, management finds that the production team maintains several boxes of lights in a nearby storage closet. On days when the assembly line breaks down, the boxes are added back at the end of day to meet production goals. This is an example of:
A. risk premium adjustment factors. B. beating the benchmark. C. gaming the production system. D. random elements in production.
To manufacture 1,000 pairs of shoes in a week, a firm must use at least 1,500 workers and 5 machines or 100 machines and 150 workers. Which method can be technically efficient?
A. 1,500 workers and 5 machines B. 150 workers and 100 machines C. Both D. Neither