If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue
A) price will be at the profit maximizing level.
B) sales will be at the profit maximizing level.
C) the firm should expand production.
D) the firm should reduce production.
D
Economics
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If consumers save the entire amount of the increase in their disposable income due to a tax cut, the ________
A) tax cut will lead to a decrease in GDP B) tax cut will lead to an increase in GDP C) tax cut will lead to an increase in current account deficit D) tax cut will have no effect on GDP
Economics
In the short run, ATC is not always higher than
a. AVC b. AFC c. MC d. Zero
Economics