If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then
a. a one-unit increase in output will increase the firm's profit.
b. a one-unit decrease in output will increase the firm's profit.
c. total revenue exceeds total cost.
d. total cost exceeds total revenue.
b
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Everything else held constant, the vertical section of the supply curve of reserves is shortened when the
A) discount rate increases. B) discount rate decreases. C) federal funds rate rises. D) federal funds rate falls.
Consumers often purchase products that, afterward, they regret purchasing. This can be explained by
A) consumers trying products to determine if their consumer surplus increases. B) consumers trying products to determine if firm advertising is honest. C) consumers trying to minimize expenditures. D) consumers trying to maximize choice.