Refer to Figure 22.3 at quantity level B
A. Marginal cost is greater than marginal revenue, so it should cut production.
B. Marginal revenue is greater than marginal cost, so the firm should expand production.
C. The company is minimizing loss.
D. The company is maximizing profit.
Answer: B
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A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Which of the following is NOT a difficulty with using a piece-rate contract?
A) measuring output B) eliciting the desired behavior C) gaining worker acceptance D) workers taking too much time to achieve a certain task
A mechanism for reallocating risk is:
A. risk pooling. B. dividend pooling. C. risk premiums. D. None of these statements is true.
A firm's economic profit is the difference between its total revenue and total costs, including the opportunity costs of the resources used in the business
a. True b. False Indicate whether the statement is true or false