If a profit-maximizing firm is currently producing output where MR = MC in the short run, it should

A. decrease output.
B. increase output.
C. not change output.
D. shut down.


Answer: C

Economics

You might also like to view...

If a firm hires workers up to the point where the value of their marginal product equals their wage, then the firm is

a. minimizing labor costs. b. maximizing profit. c. maximizing the MP of labor. d. minimizing average costs.

Economics

If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?

A) $580 B) $575 C) $585 D) $550

Economics

The negative relationship between unemployment and inflation is known as the

A) aggregate supply curve. B) aggregate demand curve. C) Phillips curve. D) efficiency wage line.

Economics

In a closed economy, aggregate demand is the sum of

A) consumer expenditure, actual investment spending, and government spending. B) consumer expenditure, planned investment spending, and government spending. C) consumer expenditure, actual investment spending, government spending, and net exports. D) consumer expenditure, planned investment spending, government spending, and net exports.

Economics