If marginal revenue is greater than marginal cost, the firm should
A) raise price.
B) raise marginal revenue.
C) increase its rate of output.
D) decrease its rate of output.
Answer: C
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An increase in input prices will cause
A) supply to shift rightward, equilibrium price to rise, and equilibrium quantity to fall. B) supply to shift leftward, equilibrium price to rise, and equilibrium quantity to fall. C) supply to shift rightward, equilibrium price to fall, and equilibrium quantity to rise. D) supply to shift leftward, equilibrium price to fall , and equilibrium quantity to rise.
Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A) the price of the good is $5.33. B) the price of the good is $8. C) the price of the good is $70. D) we cannot tell what the price of the good is without more information.