In a perfectly competitive market, if a firm finds it is producing an amount of output such that its marginal cost exceeds its price, it will
A) immediately shut down for the short run.
B) be maximizing profits.
C) increase its output to increase its profit.
D) decrease its output to increase its profit.
D
Economics
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Using the scenario above what might the instructor do to avoid this same result?
What will be an ideal response?
Economics
Assume Congress enacts a $10 billion increase in spending and a $10 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
a. $20 billion increase in aggregate demand. b. $10 billion increase in aggregate demand. c. $100 billion increase in aggregate demand. d. $10 billion decrease in aggregate demand.
Economics