Author Question: If a firm is producing an output level at which marginal revenue exceeds marginal cost in the short ... (Read 56 times)

joesmith1212 · **on:** Jun 30, 2018

If a firm is producing an output level at which marginal revenue exceeds marginal cost in the short run, the firm will increase profits by reducing its output level.
a. True
b. False
Indicate whether the statement is true or false

Question 2

The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that:
a. gasoline is an economic good but water is not.
b. the marginal utility of gasoline is greater than the marginal utility of a gallon of water.
c. the average utility of a gallon of gasoline is greater than the average utility of a gallon of water.
d. the total utility of gasoline exceeds the total utility of water.