If the marginal profit from increasing output by one unit is negative, then to attain an optimum the firm should
a. increase output until marginal profit equals zero.
b. reduce output until marginal profit equals zero.
c. increase output until marginal profit is maximized.
d. reduce output until marginal profit is maximized.
b
Economics
You might also like to view...
Consumer sovereignty answers which central issue in economics?
a. How will goods be produced? b. Who will produce the goods? c. What goods will be produced? d. For whom will the goods be produced? e. By what method will the goods be produced?
Economics
A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price is $13 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 6. b. 2.4. c. 0.4. d. 0.67.
Economics