A. no more of the activity.
B. less of the activity
C. more of the activity
D. more or less, depending on the benefits of other activities
Related Mcqs:
- If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
A. an import subsidy
B. a quota
C. comparative advantage
D. an export subsidy - When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?
A. greater than average cost, greater than average cost
B. less than average cost, greater than average cost
C. less than average cost, less than average cost
D. greater than average cost, less than average cost - A student chooses to study because the marginal benefit is greater than the ______________ cost?
A. average
B. expected
C. total
D. marginal - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped. - Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?
A. price distortions
B. consumer surplus
C. shadow prices
D. exchange rates - If both marginal cost and marginal revenue increase, a firm ?
A. Should increase output
B. Should reduce output
C. will require further information on how to respond
D. Should not change output - If a marginal revenue exceeds marginal cost, a monopolists should?
A. increase should
B. decrease output
C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
D. raise the price - When marginal revenue equals marginal cost ?
A. Total revenue equals total cost
B. There is the biggest positive difference between total revenue and total cost
C. There is the biggest negative difference between total revenue and total cost
D. Profits are Zero - If marginal revenue equals marginal cost ?
A. No profit is being made
B. Total revenue equals total cost
C. Profits are maximised
D. Producing another unit would increase profits - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production
