According to economic theory, profits are maximized where
A) total revenue equals total cost.
B) marginal revenue equals marginal cost.
C) price and average cost are equal.
D) where marginal product and average cost are equal.
B
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Suppose that a tax is placed on a particular good. If the buyers end up bearing most of the tax burden, this indicates that the
a. demand is more inelastic than the supply. b. supply is more inelastic than the demand. c. government has required that buyers remit the tax payments. d. government has required that buyers remit the tax payments.
Command-and-control regulation is flexible
a. True b. False Indicate whether the statement is true or false
The market demand for the product of a monopolistic competitor will likely be
A. relatively elastic. B. unitary elastic. C. perfectly elastic. D. relatively inelastic.
Jeff and Roel like to eat pizza twice a week, burritos once a week, and steak four days a week. This variety of dinner choices illustrates the concept of:
A. unstable preferences. B. income maximization. C. negative marginal utility. D. diminishing marginal utility.