Refer to Figure 5-1. At the market equilibrium,
A) the marginal cost is less than the marginal benefit.
B) the marginal cost is equal to the marginal benefit.
C) the marginal cost is greater than the marginal benefit.
D) the marginal cost is zero.
A
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Suppose that in producing a GDP of 3000, goods worth 200 go unsold and are unintentionally added to business inventories. These goods
A) are not counted in total expenditure. B) are part of the investment component of expenditure. C) are nonetheless part of the consumption component of expenditure. D) are classified as net exports and are subtracted from total expenditures.
If a monopoly finds that at the present level of production, marginal revenue exceeds marginal cost, the firm should
a. shut down b. increase production c. maintain the production level because MR > MC signifies economic profit d. decrease production so that MC will equal MR e. raise price
If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
a. Quantity supplied of the product will increase b. Quantity supplied of the product will decline c. Supply of the product will shift to the right d. Supply of the product will shift to the left
The figure below presents information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(6,6)If this one-shot game is repeated 100 times, the Nash equilibrium payoffs of the players will be ________ each period.
A. (6, 6) B. (2, 2) C. (?8, 10) D. (10, ?8)