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Author Question: If a profit-maximizing firm finds that price exceeds average variable cost and marginal cost is ... (Read 154 times)

Chelseaamend

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on: Jun 30, 2018
If a profit-maximizing firm finds that price exceeds average variable cost and marginal cost is greater than marginal revenue, it should:
 a. reduce output, but continue producing in the short run.
  b. increase output.
 c. shut down.
 d. not alter its production level since it is earning a profit.

Question 2

Assume that any given percentage of the population earns an equal percentage of real GDP. This percentage of population will be represented by:
 a. a point below the line of income equality.
  b. a line lying below the line of income equality.
  c. a point on the line of income equality.
  d. a line lying above the line of income equality.
  e. a point above the line of income equality.


Pamela.irrgang@yahoo.com

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


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