If a perfect competitor is currently charging $9 for its product and the marginal cost of the last unit produced is $6, the firm should
a. cut back production and increase price
b. stay at its current price and output level
c. increase price and output
d. increase price and hold output constant
e. increase output
E
Economics
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What will be an ideal response?
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Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals B) restaurant workers that under-report tip income C) a self-employed CPA who takes a longer than normal vacation D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
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