If a perfectly competitive firm produces an output level at which price is greater than marginal cost, then the firm should:
A. leave its output decision unchanged because it is earning a profit.
B. employ more fixed factors of production.
C. expand output to earn greater profits or smaller losses.
D. reduce output to earn greater profits or smaller losses.
Answer: C
Economics
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Given demand, the price is found where
A) consumer surplus is maximized. B) average costs equal price. C) price equals marginal revenue. D) marginal revenue equals marginal cost.
Economics
Refer to the data. Nominal GDP in year 3 is:
Use the following table for a hypothetical single-product economy.
A. $100.
B. $450.
C. $225.
D. $150.
Economics