If a firm increases output when MR < MC, then:

a. profit will equal zero.
b. profit will increase.
c. profit will decrease.
d. profit will remain the same.
e. the firm is minimizing losses.

c

Economics

You might also like to view...

The state governments in the U.S. spend a large percentage of their funds on ________

A) public welfare B) social security C) national defense D) income security

Economics

Which of the following models results in the highest level of output assuming a fixed number of firms with identical costs and a given demand curve?

A) Cournot B) Stackelberg C) Monopoly D) Cartel

Economics