For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10 . It follows that the
a. production of the 100th unit of output increases the firm's profit by $1.
b. production of the 100th unit of output increases the firm's average total cost by $1.
c. firm's profit-maximizing level of output is less than 100 units.
d. production of the 101st unit of output must increase the firm's profit by more than $1.
a
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Refer to Figure 4.2. The dominant strategy for Cameron is to
A) go to the movie theater. B) go to the bowling alley. C) go to either the movie theater or to the bowling alley. D) Cameron does not have a dominant strategy.
According to the misperceptions theory, when the price level falls below the expected price level
A) the economy's SRAS curve shifts up. B) the economy moves along its AD curve. C) the economy moves along its LRAS curve. D) the economy moves along its SRAS curve.