Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $180 and increasing, and average variable cost is $160 . Assuming it wants to maximize its profits, it should:
a. increase output
b. decrease output, but not shut down.
c. maintain its current output rate.
d. shut down.
a
Economics
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The original intention of the Fed's role as lender of last resort was to make loans to banks that were
A) not illiquid nor insolvent. B) illiquid, but not insolvent. C) insolvent, but not illiquid. D) both illiquid and insolvent.
Economics
Which of the following is an amendment that strengthened the Sherman Antitrust Act?
a. Celler Kefauver Act. b. Clayton Act. c. Robinson-Patman Act. d. Tyler Act.
Economics