Solved

The Following Figures Show the Demand (D) and Supply (S)

Question 18

Multiple Choice

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
The following figures show the demand (D)  and supply (S)  curves of micro and macro economists.Figure 16.6    -A firm decides to hire more equipment if: A) the average revenue it earns by selling its output is equal to its average cost. B) its total revenue is greater than the total cost of hiring the equipment. C) the marginal revenue product of the additional unit of equipment is greater than the marginal factor cost. D) its average revenue is greater than the average cost of hiring equipment. E) the price of its product is greater than the average cost of production.
-A firm decides to hire more equipment if:


A) the average revenue it earns by selling its output is equal to its average cost.
B) its total revenue is greater than the total cost of hiring the equipment.
C) the marginal revenue product of the additional unit of equipment is greater than the marginal factor cost.
D) its average revenue is greater than the average cost of hiring equipment.
E) the price of its product is greater than the average cost of production.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents