At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. MR is higher than MC.
B. MC is higher than MR.
C. ATC is lower than AVC.
D. the firm would lose profits producing the units.
Answer: A
You might also like to view...
Which type of demand for money causes the demand for money curve to slope downward?
a. Speculative demand. b. Precautionary demand. c. Transactions demand. d. Foreign-exchange demand.
Which of the following is not a concern about nudge policies?
A. It is unclear that government knows best. B. Designing helpful policies is complicated. C. Nudge policy is not strong enough to have much of an effect. D. Very few policies meet the criterion of libertarian paternalism.
The value of what KFC produces in Japan is included in the U.S. ________ and in the Japanese ________.
A. GDP; GNP B. GNP; GNP C. GDP; GDP D. GNP; GDP
When the marginal product of labor ________ the average product of labor, then the average product is maximized.
A. is less than B. is greater than C. equals D. The average product of labor is never maximized.