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As long as profits remain positive, a firm will want to increase the quantity produced.

Question 3 options:

  1) True
  2) False

Question 4 (1 point)

Only variable costs are relevant to a firm's decision to shut down.

Question 4 options:

  1) True
 

2) False

A competitive firm faces a downward-sloping demand for its product.

Question 1 options:

  1) True
 

2) False

If a firm is producing a quantity along the upward sloping portion of its marginal cost curve at which marginal cost exceeds price and is earning positive economic profits, it should

Question 10 options:

 

1)

continue to produce this quantity.
 

2)

decrease the quantity produced because doing so will increase profit.
 

3)

increase the quantity produced because profits are still positive.
 

4)

wait for the price to increase to its current marginal cost.

Ultimately, short-run supply curves are upward sloping because of

Question 12 options:

 

1)

the irrelevance of fixed costs to the firm's decision making.
 

2)

the factor-price effect.
 

3)

diminishing marginal returns to the variable inputs.
 

4)

the equality of demand and marginal revenue for competitive firms.

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019
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