Exhibit 7-4 Marginal cost and revenue for a firm
UnitQuantity
Marginal Cost
Marginal Revenue
12
$ 5
$9
13
6
9
14
7
9
15
8
9
16
9
9
17
10
9
In Exhibit 7-4, what is this firm's profit-maximizing rate of output?
A. 13.
B. 14.
C. 15.
D. 16.
Answer: D
You might also like to view...
The use of tax penalties to control pollution represents a
a. price-based market approach to the pollution problem. b. non-market approach to the pollution problem. c. major source of current federal revenues. d. pollution-rights solution to the pollution problem.
If the nominal interest rates rises, then the inflation rate must have increased
a. True b. False Indicate whether the statement is true or false
Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?
If the production of a good generates external benefits, the government could increase efficiency by
A. requiring all producers of the product to be licensed to produce the product. B. regulating production of the good to reduce the amount produced. C. taxing the production of the good to reduce the amount produced. D. subsidizing production of the good to increase the amount produced.