According to the marginal approach to profit maximization,
a. firms should equate total revenue and marginal cost when choosing the optimal output level
b. firms should take any action that increases revenue more than costs
c. economic profit is zero in the long run
d. marginal cost declines until it reaches marginal revenue at the profit-maximizing output level
e. marginal costs eventually diminish as more output is produced
B
You might also like to view...
Life-cycle saving is saving:
A. for protection against unexpected setbacks, such as the loss of a job or a medical emergency. B. to pay life-insurance premiums. C. for the purpose of leaving an inheritance. D. to meet long-term objectives, such as retirement, college attendance, or the purchase of a home.
Consumers fare worse under a monopoly than under perfect competition because a lower quantity is sold at a higher price in the monopoly market than in a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
If the required reserve ratio is 10 percent, and $1 million in new deposits are made at a bank, then which of the following are true?
a. Required reserves are $100,000 and excess reserves are $900,000. b. Required reserves are $900,000 and excess reserves are $100,000. c. Required reserves are $10,000,000 and excess reserves are $90,000,000. d. Required reserves are $1,000,000 and excess reserves are $9,000,000
Refer to the following table. In billions of dollarsGDP5.0Government Purchases1.0Transfer payments0.2Exports0.4Imports0.5Net foreign factor income0.4The sum of investment and consumption in this economy is:
A. $4.1 trillion. B. $6.0 trillion. C. $3.6 trillion. D. $3.9 trillion.