If a competitive price-taker firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then
a. average revenue exceeds marginal cost.
b. the firm is earning a positive profit.
c. a one-unit decrease in output would increase the firm's profit.
d. All of the above are correct.
C
You might also like to view...
Which of the following is NOT an example of consumer behavior consistent with the standard assumptions of microeconomic theory?
A) A concern for fairness can influence purchasing patterns. B) When demand increases, all else being equal, consumers expect price to rise. C) After a snowstorm, the demand for snow shovels increases. D) Snow shovels and snow plows are substitute goods. E) none of the above
The questions resolved by an economic system include what goods and services to produce, how they will be produced, and for whom they will be produced
Indicate whether the statement is true or false
________ is the corporation's promise to repay the holder a fixed sum of money on the designated maturity date plus pay the lender periodic interest until that date
a. A mutual fund b. A corporate stock c. A bond d. An annuity
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.