Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: geoffrey on Jun 30, 2018
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A monopolistically competitive firm is producing an output level at which marginal revenue is less than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses.
a. increase, increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease
e. increase; not change
Question 2
A good that is rival but nonexclusive is called
a. a private good
b. a public good
c. a quasi-private good
d. an external good
e. an open access good
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Answer to Question 1
C
Answer to Question 2
E