For most firms in the economy, the largest part of factor costs is the cost of

If movie theaters began collecting more gross income from ticket sales after lowering ticket prices, we would know

A) movie patrons were not behaving consistently with the law of demand. B) movie quality must have increased. C) the demand for movie tickets was elastic. D) the demand for movie tickets was inelastic. E) the supply of movies had increased.

If at an output of 4,000 units Sloan Company is making an economic profit and marginal profit is $20 per unit, the firm should

a. reduce output to maximize total profit. b. increase output until marginal profit falls to zero. c. do whatever is necessary to increase marginal profit. d. There is not enough information to make a decision.