As long as the marginal revenue curve lies above the horizontal axis,
a. total revenue must exceed total cost
b. the total revenue curve must have a positive slope
c. marginal revenue must exceed marginal cost
d. profit must be rising
e. the firm must be earning a profit
B
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Which of the following is necessary for efficient markets?
A) Positive externalities B) Negative externalities C) Pecuniary externalities D) Free-riding
Which of the following is likely to cause a decrease in both the wage rate and the level of employment in an industry?
A) A right shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the supply curve for labor, without any change in the demand curve for labor C) A right shift in the demand curve for labor, without any change in the supply curve for labor D) A left shift in the demand curve for labor, without any change in the supply curve for labor