The profit-maximizing level of output for a firm occurs at the point at which
A) P = ATC.
B) P = AVC.
C) MR = MC.
D) MR = ATC.
C
You might also like to view...
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $2,800 . Profits=$5,600 b. Bundle the goods at $4,000 . Profits=$8,000 c. Charge $2,800 for good 1 and charge $1,700 for good 2; Profits=$4,500 d. Charging the lowest price for each good individually is the best pricing strategy; profits = $7,000
If the federal government were to run a budget deficit, this would:
a. increase the size of the national debt. b. reduce the size of the national debt. c. leave the size of the national debt unchanged. d. increase the national debt only if the government also expands the supply of money.
The diamond-water paradox was solved by knowing that
A. the price of water and diamonds is determined by total utility received, not marginal utility. B. the price of water and diamonds is determined by marginal utility, not total utility. C. the total utility of water is greater than the total utility of diamonds. D. the marginal utility of water is greater than the marginal utility of diamonds.
On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples? A) 2 pounds of bananas B) 5/12 of a pound of bananas C) 0.5 of a pound of bananas D) 2 pounds of apples E) 100 pounds of bananas