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Author Question: If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should ... (Read 108 times)

Coya19@aol.com

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  • Posts: 601
on: Jun 29, 2018
If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should
 
  A) reduce its output.
  B) increase its output.
  C) lower the price.
  D) keep output constant and enjoy the above normal profit.

Question 2

The income effect of a decrease in the price of legal services, a normal good, results in
 
  A) an increase in the demand for legal services.
  B) an increase in the quantity of legal services demanded.
  C) a decrease in the demand for legal services.
  D) a decrease in the quantity of legal services demanded.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
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mcni194

  • Sr. Member
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  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


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