Author Question: If marginal revenue exceeds marginal cost, to increase its profit the firm will A) decrease its ... (Read 76 times)

viki · **on:** Jun 29, 2018

If marginal revenue exceeds marginal cost, to increase its profit the firm will

A) decrease its output.
B) increase its output.
C) keep its output the same.
D) shut down.

Question 2

Danny has 12 to spend on two goods: pies and soda. The price of a pie is 4, and the price of a can of soda is 2. To maximize his utility, Danny buys ________.

A) the combination that gives him equal total utility from pies and soda
B) 2 pies and 2 cans of soda
C) only sodas because they are less expensive
D) the combination that gives him the same marginal utility per dollar spent on pies as on soda