If a firm's marginal revenue exceeds its marginal cost, it should
a. raise its price
b. advertise more
c. lay off a few employees
d. cut back its overhead
e. increase its output
E
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The price of one bedroom apartments in Cheyenne increased from $55,000 to $65,000 and the quantity of apartment for sale increased from 25 to 30. Using the midpoint method, the price elasticity of supply for apartments in Cheyenne is equal to
A) 0.916. B) 0.75. C) 1.09. D) 2.18. E) 0.08.
From the figures below, the market price of rockets is
A. 10.
B. 4.
C. 6.
D. 20.
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed input in the short run. If the per-unit rental rate of capital, r, is $25 and the per-unit wage, w, is $15, then the fixed cost of using 81 units of capital and 9 units of labor is:
A. $2,160. B. $135. C. $2,025. D. There is insufficient information to determine the fixed costs.
An aggregate demand curve
A. is upward sloping. B. relates aggregate quantity demanded to an index of variables including price level, worker productivity, and international exchange rates. C. shows the amount of aggregate national production at different levels of disposable income. D. shows the inverse relationship between the price level and the total quantity of goods and services demanded.