If a monopolist produces to a point at which marginal revenue is more than marginal cost then
A) the firm should increase output.
B) the firm should reduce output.
C) the firm is maximizing profits.
D) we do not know if the firm should increase or reduce without more information.
Answer: A
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Other things constant, which of the following would you expect to increase the output growth rate of a country?
What will be an ideal response?
In the employment of any resource, a firm should
A) equate marginal revenue product with the cost of the additional resource. B) hire each input unit that adds more to revenue than it adds to costs. C) hire each input unit provided its marginal physical product is greater than zero. D) A and B are both correct.
Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. 
Figure 15.2 Refer to Figure 15.2. If We Do Hair maximizes profits as a monopolistically competitive firm, its ________ is $960.
A. total revenue B. profit C. total cost D. loss
Answer the following statements true (T) or false (F)
1. When average costs are increasing, marginal costs are greater than average costs. 2. If a firm increases all its inputs by 10 percent and its output increases by 15 percent, the firm is experiencing diseconomies of scale. 3. A major factor explaining economies of scale is increased specialization of labor. 4. Diseconomies of scale are caused by the law of diminishing marginal returns. 5. If a firm doubles its resource inputs and as a result output triples, then the long-run average cost curve must be upward-sloping.