If a firm's marginal revenue is below its marginal cost, an increase in production will usually:
a. increase profits.
b. leave profits unchanged.
c. decrease profits.
d. increase marginal revenue.
c
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After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves
a. True b. False
If the labor demand decreases, what will happen to the real wage, employment, and output, assuming no change in the labor supply?
a. The real wage will increase, employment will decrease, and real output will increase. b. The real wage will decrease, employment will decrease, and real output will increase. c. The real wage will increase, employment will decrease, and real output will decrease. d. The real wage will increase, employment will increase, and real output will increase. e. The real wage will decrease, employment will decrease, and real output will decrease.