What is the value of marginal profit at the profit-maximizing output?
What will be an ideal response?
Marginal profit is the difference between marginal revenue and marginal cost. When a firm maximizes profit, the last unit of output adds equal amounts to revenue and cost. Therefore, at the profit-maximizing output marginal profit is zero.
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A corporation is legally owned by its
A. chief executive officer. B. board of directors. C. bondholders. D. stockholders.
The marginal revenue product of a resource is:
a. the marginal product of the resource multiplied by the price of the product it helps to produce. b. the price of the product times the price of the resource. c. larger when the product price is smaller. d. larger when the marginal product is smaller.
If newspaper headlines detailed an increased American interest in British goods, which of the following would we expect to observe in the market for pounds?
a. An increase in supply, a depreciation of the pound, and a larger number of pounds traded b. An increase in demand, a depreciation of the pound, and a smaller number of pounds traded c. An increase in demand, an appreciation of the pound, and a larger number of pounds traded d. A decrease in demand, a depreciation of the pound, and a smaller number of pounds traded e. A decrease in supply, an appreciation of the pound, and a smaller number of pounds traded.
Market demand curves may slope downward even if some individual demand curves do not because
a. the law of demand requires that this is true. b. lower prices may bring more purchasers into the market. c. merchants try to sell more at lower prices. d. people believe expensive goods are better goods.