A profit-maximizing firm always
a. sells its output at P = MR.
b. produces at the output at which MR = 0.
c. hires labor until the MRP of labor = 0.
d. produces every unit of output for which MR > MC.
d
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Which of the following is not a component of gross investment?
A. Construction of a suburban housing project. B. The purchase of a new drill press by the Ajax Manufacturing Company. C. The piling up of inventories on a grocer's shelf. D. The purchase of 100 shares of AT&T by a retired business executive.
Which of the following directly shifts the short-run aggregate supply curve?
A) a change in aggregate demand B) a change in the price level C) a change in resource prices D) all of the above
In the above table, the marginal revenue from the fourth unit of output is
A) $30. B) $147. C) $150. D) $180.
If a linear, two-good production possibilities curve has a slope of ?2, then:
A. you have a comparative advantage in the good measured on the vertical axis. B. having an additional unit of the good measured on the vertical axis means giving up ½ of a unit of the good measured on the horizontal axis. C. you have an absolute advantage in the good measured on the vertical axis. D. having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis.