If a firm’s marginal profit is negative, it should reduce its output level.
Answer the following statement true (T) or false (F)
True
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If demand is given by Q = Ap-b where A and b are positive constants, the absolute value of price elasticity of demand
A) = b. B) = A. C) = A/b. D) depends on the price.
Suppose a U.S. importer agrees to pay a Japanese firm 55,000 yen for a shipment of goods. If the agreement is made when the exchange rate is $1 = ¥100, what is the change in the dollar value of the goods if the exchange rate changes to $1 = ¥110, on the payment-due date?
a. -$50 b. $550,000 c. -$550,000 d. $50 e. -$55,000
As an individual earns additional income, the marginal utility of income tends to
A. Decrease. B. Increase. C. Remain constant. D. Shift toward the origin.
Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D1 to D0, shown in the following diagram?
a) A decrease in investment tax credits. b) A technological advancement that increases productivity. c) An increase in business taxes. d) The expansion of business regulations.