7. If a firm's MR exceeds its MC, then: A. this firm should produce less, since its revenue will rise faster than its costs. B. this firm should produce more, since its revenue will rise faster than its costs. O C. this firm should produce more, since its costs will rise faster than its revenue. O D. this firm should produce less, since its costs will rise faster than its revenue. SUBMIT Profits are maximized at the level of output where: OA. MR = P. OC. P = AC. D. MR = MC. SUBMIT 9. Which of the following is true about the MR for a competitive firm? A. MR falls as the quantity increases. B. MR is constant and equal to the market price. C. MR rises as quantity increases. D. MR falls and then rises as quantity increases. SUBMIT 8. B. MC = AC.

7. If a firm's MR exceeds its MC, then: A. this firm should produce less, since its revenue will rise faster than its costs. B. this firm should produce more, since its revenue will rise faster than its costs. O C. this firm should produce more, since its costs will rise faster than its revenue. O D. this firm should produce less, since its costs will rise faster than its revenue. SUBMIT Profits are maximized at the level of output where: OA. MR = P. OC. P = AC. D. MR = MC. SUBMIT 9. Which of the following is true about the MR for a competitive firm? A. MR falls as the quantity increases. B. MR is constant and equal to the market price. C. MR rises as quantity increases. D. MR falls and then rises as quantity increases. SUBMIT 8. B. MC = AC.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...

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