If a perfectly competitive firm's marginal revenue was less than its marginal cost,
a. it would raise its price in order to increase its profits
b. it would contract its output but not raise its price in order to increase its profits.
c. it is currently earning economic losses.
d. both (a) and (c) are true.
b
Economics
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The price of domestic goods in terms of foreign goods is referred to as the
A) nominal exchange rate. B) real exchange rate. C) relative inflation rate. D) purchasing power parity rate.
Economics
In the Keynesian cross diagram, the 45-degree line represents the short-run equilibrium condition that:
A. I ? I p. B. Y = PAE. C. Y* = Y. D. PAE = C + I p + G + NX.
Economics