A profit-maximizing firm will increase production when ________. a) price is less than marginal cost b) price

Question:

A profit-maximizing firm will increase production when ________.

a) price is less than marginal cost

b) price equals marginal cost

c) price exceeds marginal revenue

d) price exceeds marginal cost

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

See More Books

Question Posted: Feb 29, 2024 07:00 AM

See More Questions

MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
A: Suppose further that both technologies take capital k and labor as inputs but that the patented technology is more capital intensive. (a) Draw two isoquants, one from the technology representing...
A competitive firm has the following short-run cost function: c(y) = y3 8y2 + 30y + 5. (a) The firms marginal cost function is ___________. (b) The firms average variable cost function is...
A reducing elbow in a horizontal pipe is used to deflect water flow by an angle u = 45? from the flow direction while accelerating it. The elbow discharges water into the atmosphere. The cross-...
During the month of September, the Bridge City Go-Kart Company had the following business activities: a. On September 1, paid rent on the track facility for six months at a total cost of $12,000. b....
Refer to the information in Exercise 5-8. Ending inventory consists of 45 units from the March 14 purchase, 75 units from the July 30 purchase, and all 100 units from the October 26 purchase. Using...
Jerome M. Eisenberg is an antiquities dealer and a self-proclaimed expert in classical antiquities with a doctorate in Roman, Egyptian, and Near Eastern art. Maurice E. Hall Jr. is an art dealer who...
Southworth Company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of the cost of direct materials used in production. At the beginning of the current...
The adjusted trial balance for Chiara Company as of December 31 follows. Cash Accounts receivable Interest receivable Debit $ 30,000 Credit 52,000 18,000 nt ok Notes receivable (due in 90 days)...
The lowest point on a firms short-run supply curve is at the ________. a) break-even point b) shut-down point c) most profitable output point d) lowest point on the marginal cost curve.
The marginal cost curve intersects the ATC curve at its _________. a) minimum point, which is the break-even point b) maximum point, which is the break-even point c) minimum point, which is the...
Multiple choice Questions 1. A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest. Which of the following is not true? a. Reduce liabilities by $100,000 in...
Question 1 Jesslyn inherited $10 000 from a relative, and is considering investing the money in a savings account. She sees the following accounts advertised. BANK Trust Bank Honest Bank ACCOUNT...
A particular ion is composed of 8 protons, 9 neutons, and 9 electrons. In terms ofthe elementary charge e , what is the total charge of this ion?
Mark Harris wants to buy a car in 5 years. He will need $ 8 , 0 0 0 for a down payment. The annual interest rate is 7 % . How much money must Mark invest today for the purchase? ( For calculation...
Sheffield Company issued $ 7 6 0 , 0 0 0 , 1 0 % , 1 0 - year bonds on January 1 , 2 0 2 0 , at 1 0 3 . Interest is payable annually. Sheffield uses the effective - interest method of amortization...
Bhandari Corporation has Retained Earnings of $ 2 , 5 0 0 , 0 0 0 on January 1 , 2 0 2 4 . The company reports 2 0 2 4 net income of $ 5 0 0 , 0 0 0 and declares dividends of $ 3 0 0 , 0 0 0 during 2...
A counter flow, concentric tube heat exchanger is designed to heat water from 20 to 80C using hot oil, which is supplied to the annuls at 160C and discharged at 140C. The thin-walled inner tube has a...
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
1. A profit-maximizing firm picks the quantity of output at which ______ equals ______. 2. Arrows up or down: At a firms current level of output, marginal revenue exceeds the marginal cost. The firm...
1. A profit-maximizing firm picks the quantity of output at which ______ equals ______. 2. Arrows up or down: At a firms current level of output, marginal revenue exceeds the marginal cost. The firm...
1. A profit-maximizing firm picks the quantity of output at which ______ equals ______. 2. Arrows up or down: At a firms current level of output, marginal revenue exceeds the marginal cost. The firm...
You are given the following information concerning the trades made on a particular stock. Calculate the money flow for the stock based on these trades. Note: Leave no cells blank - be certain to...
Study each of the demand schedules below and plot them on the graphs. Then answer the ques tions that accompany the graphs. APPLES a Which of the three items has the most elastic demand? Why does it...
It is not safe to invest in cryptocurrencies like bitcoin. Agree or disagree?

A profit-maximizing firm will increase production when ________. a) price is less than marginal cost b) price

Question:

Step by Step Answer:

The correct answer is d price exceeds marginal cost Heres the explanation A profitmaximizing firm st...View the full answer

Microeconomics

Students also viewed these Business questions