Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $12; AVC = $10; MC = $15; MR = $13. The firm should
A) decrease output.
B) increase output.
C) increase price.
D) change nothing.
A
Economics
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An advantage of the decision tree is that
A) it eliminates the need for calculating the cost of capital. B) it eliminates the need for calculating probabilities. C) it causes the analyst to consider important events that may occur in the course of the project, and decisions and actions that may have to be undertaken. D) All of the above
Economics
People who receive the benefit of a good without contributing to its costs of production are called
a. contributors in kind. b. free riders. c. frequent flyers. d. cost maximizers.
Economics