If a firm is producing at an output level such that the MR is $550 and the MC is $780,
a. the firm incurs a total loss of $230
b. the firm should contract production because marginal profit is less than zero
c. M? is +$230
d. the firm should expand its output level because its total revenue is rising by $550
b. the firm should contract production because marginal profit is less than zero
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Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. The lemonade market in Jenny's neighborhood is more likely to be perfectly competitive if:
A. each lemonade stand sells the same kind of lemonade. B. some of the neighborhood parents build elaborate booths for their kids' stands while some kids sell from makeshift tables. C. each stand tries to get more customers by offering different varieties of lemonade and snacks. D. all of the kids advertise heavily.
Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
A) 0.02 dollars per krone and 0.70 dollars per euro B) 0.05 dollars per krone and 1.30 dollars per euro C) 2.00 dollars per krone and 7.14 dollars per euro D) 0.20 dollars per krone and 1.43 dollars per euro
Economies of scale can interfere with competition
Indicate whether the statement is true or false
Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000 . What is the firm's fixed costs?
a. $9,000 b. $10,000 c. $11,000 d. $12,000