If a firm increases output when MR > MC, then:
a. profit will equal zero.
b. profit will increase.
c. profit will decrease.
d. profit will remain the same.
e. the firm is minimizing losses.
b
You might also like to view...
If the United States imports low-cost goods produced in low-wage countries instead of producing the goods domestically,
a. the United States will incur a net loss of total jobs. b. the United States will gain, and domestic resources will be employed more productively. c. dollars that leave the United States will not return to buy goods produced by high-wage American workers. d. the availability of consumption goods in the United States will be reduced.
Answer the following statements true (T) or false (F)
1. If there are many firms in an industry, then it must be a purely competitive market. 2. The basic difference between pure competition and monopolistic competition is in the number of firms in the industry. 3. Competitive firms are price takers largely because of intensive advertising by their competitors. 4. For a purely competitive firm, the demand curve facing it is the same as its marginal revenue curve. 5. In pure competition, the industry demand curve is infinitely price elastic.