Consider a firm that produces peanut butter. An increase in the price of peanuts will cause the firm to lower its output because
a. fixed costs will rise.
b. marginal cost will rise.
c. the price of peanut butter will rise.
d. marginal revenue will fall.
b. marginal cost will rise.
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If the San Diego Opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the San Diego Opera was:
A. elastic. B. unit elastic. C. inelastic. D. either elastic or inelastic.
A ________ is a complete plan describing how a player will act
A) strategy B) payoff C) hypothesis D) policy
Refer to Scenario 13.9. What kind of game is being played by Lago and Nessie?
A) Battle of the Sexes. B) Prisoners' Dilemma. C) Beach Location. D) Stackelberg Output Choice. E) Cournot Output Choice.
The imposition of a per-unit tax on polluting firms will result in the socially efficient level of production only if the tax equals:
a. the marginal social cost plus the marginal private cost. b. the marginal social cost plus the marginal external cost. c. the marginal social cost minus the marginal private cost. d. the average total cost minus the average variable cost.