Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $8.00; AVC = $5.00; MC = $8.00; MR = $9.00. The firm should
A) decrease output.
B) increase output.
C) increase price.
D) continue to produce its current output.
B
You might also like to view...
When the price of Gatorade is $2 per bottle, the quantity demanded is 500 bottles per at the local grocer. When the price falls to $1 per bottle, the quantity demanded increases to 1000. Given this information, the demand for Gatorade is
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic.
The government of a small open economy announces a tax cut of $100 this year, combined with a tax increase of $110 next year, when the interest rate is 10%
What are the effects of this change on the world real interest rate, national saving, investment, and the current account balance in equilibrium when (a) Ricardian equivalence holds? (b) Ricardian equivalence does not hold?
According to the above table, the value of M2 is
A) $3,807 billion. B) $5,237 billion. C) $6,237 billion. D) $6,253 billion.
Puerta Vallarta International Airport is near the coast. At night planes take off and land from the west, over the water. During the day planes approach and leave from the east, over Puerta Vallarta neighborhoods. Night flights into and out of Puerta Vallarta are more dangerous than day flights. Which rights are in conflict in this situation?
a. residents' right to enjoy the ocean and their right to peace and quiet b. residents' right to enjoy the ocean and air passengers' right to enjoy the ocean c. residents' right to peace and quiet and air passengers' right to safety d. residents' right to peace and quiet and safety e. air passengers' right to safety and convenience