If actual output is greater than equilibrium output, firms will ________ output to keep from ________ inventories
A) increase; accumulating
B) increase; depleting
C) decrease; depleting
D) decrease; accumulating
D
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A duopoly is a form of
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output. b. contract output. c. maintain output. d. There is insufficient information to answer the question.
If the demand for electricity is inelastic, and the local utility wants to increase its total revenue, it should ________ its price.
A. frequently change B. raise C. not change D. lower
In the absence of environmental protection laws, firms pollute because:
A. business owners do not believe that pollution is a problem. B. controlling emissions costs money, thereby reducing profits. C. business owners follow different norms than do environmentalists. D. the cost pollution imposes on society is small relative to the cost of reducing pollution.