Firms may reasonably decide to cut prices if
A. profits are not likely to decline.
B. marginal profit is not negative.
C. MR > MC.
D. All of the responses are correct.
Answer: D
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A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125. Using the midpoint method, what is the price elasticity of demand?
A) 0.75 B) 1.00 C) 1.25 D) 0.50 E) 0.0
Hardcover Books The marginal cost of printing a typical hard cover novel is $12.00 while the same book in paperback has a marginal cost of $2.00 lower. So why do publishers charge an average of $15 more for hard cover books?
Capital income does not include income paid to households for the use of their capital
a. True b. False Indicate whether the statement is true or false
Where are the most economically advanced capitalist countries located?
a. Western Europe b. North America c. New Zealand d. All of the above are locations of some of the most economically advanced capitalist countries.