| 41. | When an increase in output by one firm raises the marginal revenues of the other firms, production decisions are strategic complements.
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| 42. | The general rule is that a firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs.
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| 43. | Because of this jump discontinuity in the marginal revenue curve, marginal costs could change without necessarily changing the price or quantity.
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| 44. | What is not quite so evident is that the marginal revenue curve is below the inverse demand curve at all points.
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| 45. | A firm would choose to shut down if marginal revenue is below average variable cost at the profit-maximizing positive level of output.
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| 46. | The only equation you should be concerned is whether Marginal cost = Marginal revenue, whether the firm is making losses or profits.
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| 47. | The marginal revenue product of labour can be used as the demand for labour curve for this firm in the short run.
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| 48. | A competitive firm's marginal revenue is the price it gets for its product, and so it will equate marginal cost to price.
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| 49. | In a simple case of a single product, the price is set at that quantity demanded where the marginal cost equals the marginal revenue.
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| 50. | To maximize profits the firm should increase usage " up to the point where the input s marginal revenue product equals its marginal costs ".
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