If marginal cost is greater than marginal revenue
A. the firm should expand output.
B. the firm should contract output.
C. the firm should hold output constant.
D. there is no way to determine if the firm should expand output, contract output, or hold output constant.
B. the firm should contract output.
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Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.30 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's total profit?
A. $11,200 B. $13,200 D. $12,700
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then, at a price of $2, the price elasticity of supply is
A) .01. B) .09. C) 1. D) 11.
A macroeconomist would study
A) the price changes at K-Mart. B) the cost problems at several airlines. C) the economy's unemployment level. D) none of the above.
Rising healthcare costs are attributable to
A) people living longer and desiring more care. B) reliance on expensive technology to support and prolong life. C) third-party financing of healthcare costs. D) all of the above