If a firm is producing where MR < MC
A. the revenue gained by producing one more unit of output equals the cost incurred by doing so.
B. the firm is already maximizing profits because revenue is being decreased by more than costs.
C. the revenue gained by producing one more unit of output is less than the cost incurred by doing so.
D. the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.
Answer: C
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The number of adults not in the work force of a country equals 6 million and the number of individuals employed is 5 million. If there are 12 million potential adult workers in the economy, what is the current unemployment rate in this country?
A) 21 percent B) 16.67 percent C) 30.55 percent D) 12.45 percent
What are substitute goods, and how does a change in the price of one substitute good influence the demand for the other?
What will be an ideal response?
Funds lent to start-up firms in return for shares of the profit if the firms succeed are called:
A. retained earnings. B. time deposits. C. venture capital. D. transfer payments.
According to classical economists, unemployment exists because
A. workers are all identical. B. the minimum wage generates unemployment. C. it takes time and effort for someone to find a job. D. government activity causes unemployment.