Author Question: A perfectly competitive firm is producing at the point where its marginal cost equals its marginal ... (Read 92 times)

EY67 · **on:** Jun 29, 2018

A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will

A) rise and its total variable cost will rise even more.
B) rise and its total variable cost will rise, but not by as much.
C) fall but its total variable cost will rise.
D) fall and its total variable cost will fall, but not by as much.

Question 2

If a country has a capital and financial account deficit, that country's stock of international indebtedness is

A) increasing.
B) decreasing.
C) constant.
D) zero.