A profit-maximizing firm will only produce a positive amount of output if:
A. its total revenue is greater than its total cost.
B. its total revenue equals its total cost.
C. its total revenue is greater than or equal to its variable cost.
D. its total revenue is greater than its fixed cost.
Answer: C
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The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
A. John's income is being held constant. B. John's purchases of good X are being held constant. C. John's income and purchases of this good are being held constant. D. the price of good X is being held constant.
On a production possibilities curve diagram, greater entrepreneurship:
A. causes the curve to shift outward. B. keeps the economy on the curve. C. prevents movement along the curve. D. keeps the economy at the corners of the curve.
Total utility refers to the:
A. total satisfaction one gets from the consumption of a product. B. satisfaction one gets from the consumption of an additional unit of a product. C. satisfaction one gets from the consumption of an additional unit of a product times its price. D. maximum satisfaction one can get from the consumption of a good.
Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. In a majority vote, this proposal will most likely be:
A. Accepted; the public good is produced even though it is economically inefficient B. Defeated; the public good is not produced even though it would have been efficient to do so C. Accepted; the public good is produced which is economically efficient D. Defeated; the public good is not produced, which is the proper outcome