A consultant has advised Consolidated Fish, Inc., a perfectly competitive firm, that it should cut back its production in order to increase its profits. We can conclude from this that
A. CF's total costs must be greater than its total revenues.
B. CF's marginal cost must be greater than the price of its product.
C. fixed costs are not being covered and CF should shut down.
D. CF's costs are increasing at a rate less than its revenues.
B. CF's marginal cost must be greater than the price of its product.
You might also like to view...
If penalties are imposed only on buyers (but not on sellers) of marijuana, the equilibrium price of marijuana ________, and the equilibrium quantity of marijuana sold ________
A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease
A telecommunication company divided into different divisions for residential and business Internet service is an example of
a. An M-form of an organization b. A functional organization c. An N-form organization d. All of the above