If a firm is producing a level of output at which that outputs marginal cost is less
Question:
If a firm is producing a level of output at which that output’s marginal cost is less than the price of the good, _______-.
a) it is producing too much to maximize its profits
b) it is probably maximizing its profits
c) higher profits could be obtained with increased production.
d) none of the above
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
The correct answer is c higher profits could be obtained with increased production Heres the explana...View the full answer
Answered By
Muhammad Khurram
I have strong General Management skills to apply in your projects. Over last 3 years, I have acquired great knowledge of Accounting, Auditing, Microsoft Excel, Microsoft PowerPoint, Finance, Microsoft Project, Taxation, Strategic Management, Human Resource, Financial Planning, Business Planning, Microsoft Word, International Business, Entrepreneurship, General Management, Business Mathematics, Advertising, Marketing, Supply Chain, and E-commerce. I can guarantee professional services with accuracy.
4.80+
249+ Reviews
407+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
If you "load down" your car by placing passengers, cargo, etc into it, how does this affect the tires? Assume there are no leaks in the tires. Group of answer choices a. Tire pressure should increase...
-
The Lexus Company purchased a new machine on January 1, 2014. The supplier, Infinity, was paid $2,000 in cash. In addition, transportation and installation were $180 (paid in cash), legal costs...
-
Sunblessed Juice Company sells bags of oranges and cartons of orange juice. Sunblessed grades oranges on a scale of 1 (poor) to 10 (excellent). At present, Sunblessed has 100,000 pounds of grade 9...
-
Nickleby's Ski Store is completing the accounting process for its first year ended December 31, 2014. The transactions during 2014 have been journalized and posted. The following data are available...
-
In its first year of operations, Roma Company reports the following. Compute Romas first-year net income under the cash basis and the accrual basis of accounting. Earned revenues of $45,000 ($37,000...
-
Nationwide Insurance developed a program to recruit new insurance agents by offering planning, training, and start-up financing to build self-sustaining agencies. These new agents would be...
-
Pro Tire manufactures tires for all- terrain vehicles. Pro Tire uses job costing and has a perpetual inventory system. On November 22, Pro Tire received an order for 190 TX tires from ATV Corporation...
-
Statement of cash flows-indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: December 31, 20Y9 December 31, 20Y8 Assets Cash Accounts...
-
A firm will operate at that output at which MC = MR _______. a) only in the short run b) only in the long run c) in both the short run and the long run d) in neither the short run nor the long run
-
Statement 1: Price is equal to total revenue divided by output. Statement 2: A firm never maximizes profits. a) Statement 1 is true, and statement 2 is false. b) Statement 2 is true, and statement 1...
-
The Governmental Accounting Standards Board places exposure drafts (EDs) of proposed future standards on its website. These exposure drafts provide an early view of the GASBs consensus viewpoints on...
-
Need help in designing a blueprint for best buy in office furniture category and discuss the following items as well as an integration of these items that would support your company's business...
-
Identify a service and be prepared to present how COVID-19 is affecting (or has affected) a service in relation to services marketing. Need to be staying up with current news and trends. The answers...
-
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $200 per year for 14 years at...
-
Create a function named divide, which has the following details: It needs to receive 2 parameters. The first parameter should be divided by the second one. The function should return the result...
-
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000. Maturity Ask Rate Mo/Yr Bid...
-
A concentric tube heat exchanger for cooling lubricating oil is comprised of a thin-walled inner tube of 25-mm diameter carrying water and an outer tube of 45-mm diameter carrying the oil. The...
-
Using thermodynamic data from Appendix 4, calculate G at 258C for the process: 2SO 2 (g) + O 2 (g) 88n 2SO 3 (g) where all gases are at 1.00 atm pressure. Also calculate DG8 at 258C for this same...
-
1. A patent increases the incentive to develop new products because it ________ the price of the product and thus generates profit to cover a firms costs of _______. 2. In some cases, a patent is...
-
1. A patent increases the incentive to develop new products because it ________ the price of the product and thus generates profit to cover a firms costs of _______. 2. In some cases, a patent is...
-
1. Senior Discounts for Movies. Your movie theater charges a single price of $6. The marginal cost of each patron is $1. A recent marketing survey revealed the following information about senior...
-
A small family contains four 10 W lamps, utilized 4 hours per day, two 60W fans, utilized 6 hours per day, and one refrigerator of 200W runs 20 hours daily. Then how many daily energy units are...
-
A 10.0 g object moving to the right at 19.0 cm/s makes an elastic head-on collision with a 15.0 g object moving in the opposite direction at 35.0 cm/s. Find the velocity of each object after the...
-
A soda can has a surface area of 300 cm 2 . For this problem, take atmospheric pressure to be 1.00 x 10 5 Pa. An empty soda can can be crushed by air molecules bouncing off it if the total inward...
Study smarter with the SolutionInn App