If the current margin is greater than the desired margin, the firm should
a. Increase production
b. Decrease production
c. Not change production level
d. Production ceases
a
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If the total cost of producing 10 jets is $28 million and the total cost of producing 11 jets is $30 million, this firm is experiencing
A. economies of scale in the range of 10 to 11 jets. B. constant returns to scale in the range of 10 to 11 jets. C. diseconomies of scale in the range of 10 to 11 jets. D. increasing average variable costs in the range of 10 to 11 jets.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.