If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?
A) increase output
B) decrease output
C) lower its price to sell more
D) determine what the total revenue and total cost of production are
A
You might also like to view...
In a three-player game, if a player's best choice depends on the choices made by the other two players, then the player does not have a dominant strategy
Indicate whether the statement is true or false
A commitment strategy can:
A. be used to change people's payoffs to gain cooperation. B. allow players to reach a mutually beneficial equilibrium that would otherwise be difficult to maintain. C. result in a positive-positive outcome. D. All of these statements are true.
Which of the following is an example of moral hazard?
A. A college student drinking alcohol and partying instead of studying. B. A homeowner with fire insurance not clearing bush around their property. C. A chronically sick person using hospital services. D. A chronically sick person buying more health insurance than average.
If a good that generates negative externalities were priced to account for spillover costs, then its:
A. price would increase and its output would decrease. B. price would increase, but its output would remain constant. C. output would increase, but its price would remain constant. D. price would decrease and its output would increase.