Firms that face capacity constraints can increase output only up to the capacity, but no further. Therefore, firms
a. Should price to capacity as long as MR > MC
b. Should price to capacity as long as MR = MC
c. Should price to capacity as long as MR < MC
d. Should not take capacity into consideration in pricing decisions
a
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Arranging the four market structures according to the number of firms in the industry, from fewest to the most, would be
a. monopoly, monopolistic competition, oligopoly, perfect competition b. monopoly, perfect competition, oligopoly, monopolistic competition c. monopoly, oligopoly, monopolistic competition, perfect competition d. oligopoly, monopoly, monopolistic competition, perfect competition e. perfect competition, monopolistic competition, oligopoly, monopoly
Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?
a. The supply of fast food hamburgers will increase, leading to an increase in the price of hamburgers. b. The supply of fast food hamburgers will increase, leading to a reduction in the price of hamburgers. c. The supply of fast food hamburgers will decrease, leading to an increase in the price of hamburgers. d. The supply of fast food hamburgers will decrease, leading to a reduction in the price of hamburgers.