A firm maximizes its profit by producing that quantity of output for which
a. marginal revenue equals total revenue
b. marginal revenue exceeds marginal cost by the greatest amount
c. price is the greatest distance above average total cost
d. the difference between total revenue and total cost is the greatest
e. marginal cost equals average cost
D
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There are no quasilinear tastes that have elasticity of substitution equal to 1 everywhere.
Answer the following statement true (T) or false (F)
Which of the following is NOT a characteristic of rent controls?
A. Greater availability of apartments B. Lower expenditures on maintenance C. Fewer newly built apartment buildings D. Excess demand for apartments
The Employment Act of 1946 reflects which one of the following functions of government?
A. correcting externalities B. providing public goods C. improving economy-wide stabilization D. providing a legal system
Investment spending at any level of national income is the investment producers
a. actually make b. expected to make c. expect to make d. make net of actual investment e. intend to make