It's logical, it's a rule of thumb, it's an economic guideline: As long as MR < MC, and the firm responds by decreasing the quantity it produces,
a. profit will equal zero
b. profit will increase
c. profit will decrease
d. profit will remain unchanged
e. the firm will minimize loss
B
Economics
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If the nominal money supply grows 5%, real income falls 2%, and the income elasticity of money demand is 0.8, then the inflation rate is
A) 3.0%. B) 3.4%. C) 6.6%. D) 7.0%.
Economics
One of the limitation of Five Forces is that they
a. Reduce producer surplus b. For one firm to increase profit, the profit of another participant must decrease c. Does not provide a firm with sustainable competitive advantage d. Both b and c
Economics