If a perfectly competitive firm can sell each unit of output for $9, and the marginal cost of the last unit produced is $8.50, then the:
A. firm should lower its output level in order to increase profits.
B. extra benefit of the last unit produced is less than the extra cost.
C. firm is earning an average profit of $0.50.
D. extra benefit of the last unit produced is greater than the extra cost.
Answer: D
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The standard of living (measured by what one can purchase with after-tax income) of free Americans on the eve of the Revolution was ______
a. lower than in 18th -century England, and lower than most people in the "Third World" today. b. higher than in 18th -century England, and higher than most people in the "Third World" today. c. lower than in 18th century England, but higher than most people in the "Third World" today. d. higher than in 18th- century England, but lower than most people in the "Third World" today.
An increase in the price of a resource would cause: a. producers to substitute other inputs for the resource
b. consumers to substitute other products for goods that increase in price as the result of the higher resource price. c. an increase in the demand for products that use the resource intensely. d. both (a) and (b) to occur.