If marginal revenue is less 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: D
Economics
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In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.
Economics
The distributed lag model assumptions include all of the following with the exception of:
A) There is no perfect multicollinearity. B) Xt is strictly exogenous. C) E(ut Xt, Xt-1, Xt-2) = 0 D) The random variables Xt and Yt have a stationary distribution.
Economics