For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue increases, the profit-maximizing quantity ________.

A) approaches zero
B) increases
C) does not change
D) decreases

B) increases

Economics

You might also like to view...

According to the Ricardo-Barro effect, an increase in the government budget deficit

A) lowers the real interest rate. B) has no effect on the nominal interest rate but does change the real interest rate. C) shifts the demand for loanable funds curve leftward. D) shifts the supply of loanable funds curve leftward. E) does not change the real interest rate.

Economics

Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In this monopolistic market, economic profit would encourage ________, which decreases the ________ for each firm's meals

A) entry; demand B) entry; supply C) exit; demand D) exit; supply

Economics