Author Question: When the marginal cost of a price-taking firm is less than the market price of its product, the firm ... (Read 82 times)

robinn137 · **on:** Jun 30, 2018

When the marginal cost of a price-taking firm is less than the market price of its product, the firm should:
a. expand output (provided that price is not less than average variable cost).
b. reduce output (provided that price is not less than average variable cost).
c. maintain output (provided that price is not less than average variable cost).
d. charge more than the market price.

Question 2

Income inequality is indicated by a Lorenz curve that:
a. bows up, away from the line of income equality.
b. bows down, away from the line of income equality.
c. lies parallel to the line of income equality.
d. coincides with the line of income equality.
e. approaches the vertical axis.