If a firm is producing an output rate at which marginal cost is greater than price, the firm
A) is sustaining economic loss.
B) should increase its output level.
C) should reduce its output level.
D) will not be covering its fixed cost.
Answer: C
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A marginal cost pricing rule for a natural monopoly sets ________
A) price equal to marginal cost and greater than average total cost B) marginal revenue equal to marginal cost C) marginal revenue equal to average total cost D) price equal to marginal cost
The term "stagflation" was invented in the 1970s to describe an economy experiencing both
a. deflation and economic stagnation. b. inflation and economic stagnation. c. high inflation and high employment. d. high inflation and high levels of economic growth.
The rule of 70 provides an estimate of: a. how long it will take for a nation's economy to double in size. b. the growth rate of a nation's gross domestic product per capita. c. the level of a nation's foreign reserves
d. how long it will take for a nation's population to triple in size.
Paying interest on the reserves of commercial banks kept with the central bank allows the Fed to essentially place a floor on the federal funds rate
a. True b. False Indicate whether the statement is true or false