A firm that is producing the quantity at which marginal cost exceeds both average total cost and the market price will increase its economic profit by _______
A. producing a larger quantity
B. raising the price to equal marginal cost
C. producing a smaller quantity
D. producing the quantity that minimizes average total cost
C The market price equals the firm's marginal revenue. When a firm's marginal cost exceeds its marginal revenue, the firm's profit increases if it decreases its production.
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If a significant number of part-time workers successfully find full-time employment, then
A) the unemployment rate will fall. B) the labor force participation rate will increase.. C) the unemployment rate will remain unchanged. D) the unemployment rate will rise. E) Both answers A and B are correct.
Behavioral economists have found that one major explanation for the inter-country differences in participation rates in organ-donation programs is the:
A. Anchoring effect B. Mental accounting effect C. Status quo bias D. Confirmation bias