If price is greater than the average variable cost, a profit-maximizing firm should:
A) contract production until price is equal to marginal cost.
B) expand production until price is equal to marginal cost.
C) contract production until total revenue is equal to total cost.
D) expand production until total revenue is equal to total cost.
B
Economics
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Every firm is constrained by the demand curve for the product it produces
a. True b. False
Economics
The monopolist's marginal revenue curve lies below the demand curve because
a. the monopoly is not an efficient producer b. as the monopolist increases output, the price falls c. there is no account of implicit costs d. the monopolist's demand curve is the market demand e. the monopolist can charge the highest price possible
Economics