One way a company can cover its costs and, at the same time, obey a marginal cost pricing rule is by
A) choosing output levels according to the profit-maximizing rule.
B) using price discrimination.
C) increasing production.
D) decreasing production.
E) decreasing its marginal cost but not changing its average total cost.
B
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U.S. Financial Crisis. Suppose that foreigners had reduced confidence in U.S. financial institutions and believed that privately issued U.S. bonds were more likely to be defaulted on.
a. rise which by itself would increase aggregate demand. b. rise which by itself would decrease aggregate demand. c. fall which by itself would increase aggregate demand.
Accounting profit will always be
A. equal to implicit costs. B. less than economic profit. C. more than economic profit. D. equal to sunk costs.
Diminishing marginal returns occurs as a firm adds more variable inputs to at least one fixed input because:
A. The ability or quality of the variable inputs hired decreases as more are hired B. The firm must lower the price of its product when it produces more units of output C. The per unit cost it must pay for variable inputs increases as more inputs are hired D. As more variable inputs are hired, the amount of the fixed input per variable input decreases
In the 2008-09 recession, the percentage of part-time workers due to economic reasons
A) rose to almost 18 percent. B) did not include teenagers. C) equalled the unemployment rate for those who are part-time workers due to non-economic reasons. D) decreased slightly over the period. E) doubled from 3 percent to 6 percent.