"Our marginal revenue is greater than our marginal cost at the current production level." This statement indicates that the firm:
A. is maximizing profits.
B. should decrease the quantity produced to increase profits.
C. should increase the quantity produced to increase profits.
D. None of the statements associated with this question are correct.
Answer: C
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Suppose an exhaustible resource can be sold only this period or next period. The resource owner is considering selling 100 tons of the resource this period. The future value of the resource when 100 tons are sold this period is less than the present value of the 100 tons sold this period multiplied by one plus the interest rate. What should the resource owner do?
A) She should sell more than 100 tons this period. B) She should sell only 100 tons this period. C) She should sell less than 100 tons this period. D) She should not sell any of the resource in either period.
A competitive market is one in which a number of buyers and sellers are offering similar products, and no single buyer or seller can influence the market price
a. True b. False Indicate whether the statement is true or false