Which of the following statements best expresses a firm's profit-maximizing decision rule?
a. If marginal revenue is greater than marginal cost, the firm should increase its output.
b. If marginal revenue is less than marginal cost, the firm should decrease its output.
c. If marginal revenue equals marginal cost, the firm should continue producing its current level of output.
d. All of the above are correct.
d
You might also like to view...
Which of the following could be a direct cause of investment spending decreasing?
A. Real income increases. B. Real interest rates increase. C. A firms revenues increases while their costs remain constant. D. Expected future income increases.
Along its long-run average total cost curve, a firm employs
a. a different amount of fixed inputs at each point b. the same amount of fixed inputs at each point c. a declining amount of fixed inputs at each point as it moves to higher output levels d. an increasing amount of fixed inputs at each point as it moves to higher output levels e. no fixed inputs
Probably the toughest part of creating a good mitigation strategy for global climate change is that it is
A. an economics problem. B. an issue that lacks public support. C. not certain that global climate change is even occurring. D. an international problem.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.