If a firm is a profit maximizer and faces positive marginal costs,
A) there is a natural limit to the size of the firm, where MR = 0.
B) there is no natural limit to the size of the firm; it can be as large as it wants to be.
C) there is a natural limit to the size of the firm, where MR > 0.
D) there is no natural limit to the size of the firm, hence the need for government regulation.
C
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The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy
a. True b. False Indicate whether the statement is true or false
Engineers for The All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.
A. average costs to remain constant B. average costs to increase C. average costs to decrease D. marginal costs to increase