For a perfectly competitive firm, when MC is less than MR
A. economic profits must be positive.
B. the producer has an incentive to decrease output.
C. the producer has an incentive to expand output.
D. the producer has no incentive to change production.
Answer: C
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Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include
A) depreciation and investment. B) exports and imports. C) personal taxes and corporate taxes. D) indirect taxes and subsidies.
The Walt Disney Company uses cost-plus pricing to determine the prices it charges for admission and rides at Disneyland and Walt Disney World
Indicate whether the statement is true or false
If the dollar depreciates, both the aggregate demand curve and the aggregate supply curve shift inward
a. True b. False Indicate whether the statement is true or false
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.