Which of the following will result in a firm increasing its level of production?
a. An increase in its Marginal Costs.
b. A decrease in its Marginal Revenue.
c. An increase in its Fixed Costs.
d. An increase in the price of its product.
d. An increase in the price of its product.
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A firm that sells at a price below average cost is losing money.
Answer the following statement true (T) or false (F)
Suppose at a certain quantity of output, a firm's average-total-cost curve lies above its demand curve. At this quantity of output, the firm:
a. is earning negative economic profit. b. is earning zero economic profit. c. is maximizing profit. d. should increase its output to maximize profit. e. should reduce output to maximize negative economic profit.
In a closed economy, Y - C - G equals _____. The variable Y is _____, C is _____, and G is _____
Fill in the blank(s) with correct word
The individual firm operating in a perfectly competitive labor market
A) can hire more labor only by offering a higher wage. B) faces an inelastic demand for labor. C) will pay less to the additional labor employed. D) can buy all the labor it wants at the going market wage rate.