For a certain firm, the 100th unit of output that the firm produces has marginal revenue equal to $10 and a marginal cost of $7 . It follows that
a. the production of the 100th unit of output increases the firm's profit by $3.
b. the production of the 100th unit of output increases the firm's average total cost by $7.
c. the firm's profit-maximizing level of output is less than 100 units.
d. the production of the 110th unit of output must increase the firm's profit by less than $3.
A
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To keep the foreign exchange value of the omega fairly steady, the Bank of Epsilon will ________ enough omegas on the foreign exchange market so that the ________ omegas will ________. A) buy; demand for; increase B) sell; supply of; increase C) buy; demand for; decrease D) buy; supply of; decrease
Saving $100 will:
A. increase wealth by $100 only if the $100 is used to repay a debt. B. decrease wealth by $100. C. increase wealth by $100. D. increase wealth by $100 only if the $100 is used to purchase an asset.
Among the most important supply side factors explaining homes prices would be the
A. size of the metropolitan area and the cost of land. B. size of the metropolitan area. C. cost of land. D. size of the homebuyer's car.
As long as MC > $0, TC will rise as a firm expands output.
a. true b. false