Managers can increase firm profits by:
A) increasing revenue only.
B) decreasing costs only.
C) increasing revenue and decreasing costs.
D) none of the above.
C
You might also like to view...
How does the increasing use of digital cameras affect the market for traditional camera film?
A) The quantity of traditional camera film demanded decreases. B) The demand curve for traditional camera film shifts to the left. C) The quantity of traditional camera film demanded increases. D) The demand curve for traditional camera film shifts to the right.
In the context of stock markets, “the tail wags the dog” means that a failure of the stock market can drag down the entire economy.
Answer the following statement true (T) or false (F)
If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A. Colombia probably sells coffee to Mexico. B. Mexico is more productive at making coffee than Colombia. C. Colombia has the ability to produce more coffee than Mexico with the same resources. D. Mexico should trade coffee to Colombia.
Figure 6.5 shows the short-run and long-run effects of an increase in demand of an industry with increasing cost. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. If the market demand curve shifts to the right, what will happen to an individual firm's profit?
A. Each firm earns a positive profit at point B. B. Each firm earns a zero profit at point B because the market is perfectly competitive. C. The profit of each firm decreases as more firms enter the market and share the benefits of an increase in demand pushing the market from point A to point B. D. None of these