If a perfectly competitive firm's marginal revenue was less than its marginal cost,
a. it would raise its price in order to increase its profits
b. it would contract its output but not raise its price in order to increase its profits.
c. it is currently earning economic losses.
d. both (a) and (c) are true.
b
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Governments can eliminate market surpluses through the imposition of price floors.
Answer the following statement true (T) or false (F)
When a firm is hiring an input such that the marginal revenue product of the input is equal to the marginal factor cost of the input, the firm
A) should be expanding output. B) is hiring too little of the input. C) is maximizing economic profit. D) is producing too much output.
If workers in the auto industry were unionized as auto workers, regardless of their specific jobs in the plant, this union would be called a(n)
a. agency union b. industrial union c. skilled union d. craft union e. federated union
Investing in additional education and _________ are more likely to result in accumulating sufficient personal wealth to be able to retire relatively comfortably, but these require effort, patience, and sacrifice.
a. accurately predicting the market b. investing in gold and other precious metals c. investing in random walk bonds d. starting to save early in life