Refer to the table below. If Fresh Laundry is currently producing 2 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) increase; greater
B) decrease; greater
C) increase; less
D) decrease; less
A) increase; greater
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If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied. B) the quantity of credit demanded falls short of the quantity of credit supplied. C) the quantity of credit supplied falls short of the quantity of credit demanded. D) interest rates tend to fall further.
iTunes offers samples of music downloads, and in doing so they
A) further inform customers. B) further reduce customer search costs. C) further expand the range of opportunities available to customers. D) do all of the above.