Refer to the graph shown. If the firm increases output from 30 to 40, total revenue will increase:
A. more than total cost, and so profit will decrease.
B. less than total cost, and so profit will decrease.
C. more than total cost, and so profit will increase.
D. less than total cost, and so profit will increase.
Answer: C
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In a perfectly competitive market, in the long run a permanent decrease in the market demand results in a smaller number of firms
Indicate whether the statement is true or false
Refer to the accompanying table. According to the table, Corey has the absolute advantage in: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. delivering pizza. B. neither making nor delivering pizza. C. making pizza. D. making and delivering pizza.
What is the most likely reason that snack foods sold in vending machines are so much more expensive than snack foods sold in grocery stores?
A. Snack foods sold in vending machines come in smaller packages, so the per-package costs are higher. B. Grocery stores buy in bulk, while vending machine companies tend to buy in smaller quantities. C. People who purchase snack foods from vending machines tend to have less elastic demand for snack foods. D. Owners of vending machine companies are greedier than owners of grocery stores.
An assumption of the classical model is that
A. money illusion is widespread. B. people make decisions based on nominal prices rather than real prices. C. people are motivated by self-interest. D. prices are flexible while wages are inflexible.