When should a firm increase its production?
a. When it is earning a positive profit.
b. When its revenues are too low to cover the firm's fixed costs.
c. When there is a fall in the price of its product.
d. When its marginal revenue exceeds its marginal cost.
d. When its marginal revenue exceeds its marginal cost.
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If the federal government's expenditures are less than its tax revenues, then
A) the budget is balanced. B) a budget surplus results. C) a budget deficit results. D) No conclusion can be drawn here regarding the budget surplus or deficit without information regarding government purchases versus other outlays.
The concept of external benefit is associated with a negative externality, but not with a positive externality
a. True b. False Indicate whether the statement is true or false