Author Question: If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should ... (Read 156 times)

Coya19@aol.com

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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.


mcni194

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Answer to Question 1

B

Answer to Question 2

B



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