If a perfectly competitive firm is producing 500 units and, at the 500th unit, the difference between marginal revenue and marginal cost (MR - MC) is negative, which of the following is true?
A) The 500th unit costs less to produce than the firm earns in revenue.
B) The firm should decrease production to maximize profit.
C) The firm is maximizing profit.
D) The firm should increase production to maximize profit.
B) The firm should decrease production to maximize profit.
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Monetary policy is primarily exercised by:
a. Congress. b. the President. c. the Federal Reserve. d. the Treasury Department.
A federal policy that leads to an increase in aggregate supply is likely to result in: a. lower levels of employment
b. an increase in aggregate demand. c. a higher price level. d. lower levels of real GDP. e. an economic expansion.
As workforces become more educated in countries with comparative advantage in labor-intensive products, the comparative advantage for the production of those labor-intensive goods shifts:
A. toward other countries with less cheap labor relative to the other factors of production. B. away from countries with more cheap labor relative to other factors of production. C. toward other countries with more cheap labor relative to the other factors of production. D. toward countries with more capital for production.
Defining the "relevant market" involves looking at two components. They are
A. the goods market and the services market. B. the competitive market and the dominant market. C. the local market and the national market. D. the geographic market and the product market.