If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue
A. the firm should reduce production.
B. the firm should expand production.
C. price will be at the profit maximizing level.
D. sales will be at the profit maximizing level.
Answer: A
You might also like to view...
The purchasing power of money increases as the
A) production increases. B) price level falls. C) demand increases. D) unemployment decreases.
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 2 percent, an initial deposit of $500 will lead to a total increase in deposits of
A) $250. B) $5,000. C) $25,000. D) $50,000.
Which of the following statements is TRUE?
A) Free trade is beneficial only if your country is strong enough to stand up to foreign competition. B) Free trade is beneficial only if your competitor does not pay unreasonably low wages. C) Free trade is beneficial only if both countries have access to the same technology. D) Free trade is never beneficial for developing countries. E) Free trade can be beneficial to economic welfare of all countries involved.
In Brinley Thomas' (1954) theory of the Atlantic Economy,
(a) cotton exports to Europe drove the growth of the U.S. economy. (b) people and capital moved to the U.S. when U.S. economic growth was strong. (c) the peaks of the U.S. business cycle were closely aligned with that of European peaks. (d) all of the above are true.