In a perfectly competitive market, the market price is $23. At the current level of output, a firm has a marginal cost of $28. What should the firm do?
A) produce a larger output to make more profit
B) nothing, it is currently maximizing profit
C) produce less output to make more profit
D) shut down
E) raise the price of its product
C
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Under the U.S. Constitution, each state gave up its right to issue money, borrow, levy taxes and regulate the value of money on behalf of national efforts
Indicate whether the statement is true or false
Stimulating aggregate demand to reduce unemployment will aggravate inflation.
Answer the following statement true (T) or false (F)
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. How much is this person working if her daily earnings are $116?
A. 12 hours B. 18 hours C. 16 hours D. 8 hours