Author Question: A profit-maximizing firm that is operating in the short run will sell an additional unit of output ... (Read 107 times)

cdr_15 · **on:** Jun 30, 2018

A profit-maximizing firm that is operating in the short run will sell an additional unit of output as long as:
a. as doing so reduces the firm's per-unit costs.
b. doing so reduces the firm's marginal costs.
c. doing so adds more to revenue than it adds to cost.
d. there is additional plant capacity with which to produce.

Question 2

If the Gini co-efficient for an economy is 0.85, which of the following statements is true?
a. The national income of this economy is more or less equally distributed.
b. The Lorenz curve for the economy will bow above the line of perfect equality.
c. The Lorenz curve for the economy will coincide with the line of perfect equality.
d. The Lorenz curve for the economy will bow down below the line of perfect equality.
e. The Lorenz curve for the economy will be a rectangle.