When a competitive firm doubles the quantity of output it sells, its
a. total revenue doubles.
b. average revenue doubles.
c. marginal revenue doubles.
d. profits must increase.
a
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How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave. B) It is difficult to measure the output and attribute output to a particular worker. C) It gives workers incentive to produce more. D) It increases firm profits.
The American Medical Association is responsible for many of the characteristics of the modern health care delivery system
a. True b. False
If equilibrium GDP is below potential, then
a. unemployment is unusually low b. the Fed will lower the money supply c. the wage rate will fall as workers compete for scarce jobs d. the aggregate supply curve will shift leftward e. the wage rate will remain stable as labor productivity increases