At the current level of production, if the firm's marginal costs exceeds marginal benefits, then
a. The company should produce more
b. The company is maximizing profit at this output
c. The company is producing too much
d. Not possible to determine
c
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A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. The prevailing market price is $48
Assuming that this firm continues to produce in the long run, what happens to output level in the long run? A) The firm produces the same output level. B) The firm's output increases. C) The firm's output falls. D) There is insufficient information to answer the question.
Economist James Tobin developed a formal model that justifies holding ________, and it goes some way in explaining variations in the demand for ________
A) only safe assets or only risky assets, M1 B) only safe assets or only risky assets, M2 C) a mix of safe and risky assets, M1 D) a mix of safe and risky assets, M2