If marginal revenue exceeds marginal cost, profit maximizers should
a. reduce output until they are equal
b. increase output until they are equal
c. increase output until profits are zero
d. decrease output unless profits are zero
e. maintain current output
B
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Which of the following is not an option for a perfectly competitive firm in the short run?
A) Increase its level of production. B) Decrease its level of production. C) Shut down. D) Exit the market altogether.
A problem with third-party financing of so much of health care is that
A) it reduces the quality of health care received by most people. B) it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed. C) it causes the demand for medical services to increase, which causes health care costs to increase. D) it discourages people from relying on the judgments of physicians in making decisions about health care.