There may be other goals an entrepreneur pursues, but the primary goal of the entrepreneur is to maximize
a. market share
b. production
c. the difference between price and cost
d. profit
e. size of the firm's plant
D
You might also like to view...
When a U.S. company shifts some of its production to Mexico, it is engaging in
A) involuntary exchange. B) outsourcing. C) insourcing. D) self-sufficiency.
Refer to the table below. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, what is Big Oaks' marginal cost of producing between points C and D on their production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $7.50
B) $2.50
C) $3.75
D) $9.25
If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because
a. exports are excluded from real GDP but not nominal. b. real GDP incorporates the impact of federal budget deficits and surpluses; nominal GDP does not. c. real GDP reflects the impact of transfer payments on the economy, but nominal GDP does not. d. real GDP adjusts for changes in the general level of prices, but nominal GDP does not.
For a perfectly competitive firm, profit maximization occurs when
A. marginal revenue equals marginal cost. B. marginal revenue equals average total cost. C. marginal cost is equal to average total cost. D. average total cost is at its minimum.