If marginal revenue is less than marginal cost, the firm should
A) raise price.
B) raise marginal revenue.
C) increase its rate of output.
D) decrease its rate of output.
Answer: D
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It is illegal for business to price discriminate when selling goods to other businesses unless
a. Price discounts are cost-justified b. Discounts are offered to meet competitors' price c. Both a and b d. It is not illegal for businesses to price discriminate
Sheila is on a temporary layoff from her automobile factory job but has not looked for work in the last four weeks. The Bureau of Labor Statistics counts Sheila as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. employed and not in the labor force.
The marginal utility for a good is computed as
A. Total utility divided by quantity. B. Quantity divided by total utility. C. The change in total utility divided by the change in quantity. D. The change in quantity divided by total utility.
The government might provide a subsidy when
A) a negative externality exists. B) an effluent fee has been unsuccessful. C) it wants to increase the amount of a good consumed. D) it wants to transform a negative externality into a positive externality.