Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?
a. The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale.
b. The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale.
c. The total cost of producing all units is no greater than the total revenue derived from the sale of the units.
d. The total cost of producing all units is less than the total revenue derived from the sale of the units.
B
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During a time of high unemployment, a country can increase the production of one good or service
A) by using resources in the production process twice. B) without decreasing the production of something else. C) and must increase the production of something else. D) but must decrease the production of something else. E) but the opportunity cost is infinite.
The demand for cat food decreases while the supply increases. The equilibrium price of cat food ________, and the equilibrium quantity ________
A) does not change; increases B) rises; decreases C) falls; perhaps changes but we can't say if it increases, decreases, or stays the same D) rises; perhaps changes but we can't say if it increases, decreases, or stays the same E) falls; increases