When MR < MC for a firm, the firm should
A) reduce its level of output.
B) stay at the same level of output.
C) stop producing.
D) increase output, unless P < AVC.
A
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Labor supply
A) must necessarily increase when the real wage increases. B) increases if the substitution effect exceeds the income effect. C) is increasing and then decreasing in the real wage. D) increases when taxes increase.
The WWQX Co sells shirts. Shirts with the company label on the tag are perceived to be of higher quality than shirts with the store's label. Yet, shirts are of identical quality regardless of the label. The demand for perceived high-quality shirts is ph = 80 - qh. The demand for perceived low-quality shirts is pl = 19 + ph - ql. The firm can produce shirts at TC = 2qh + 2ql. What is WWQX Co total
profit? A) $2,362 B) $1,521 C) $2,518 D) $1,875