The general rule for profit maximization in a firm is to
A. set marginal revenue equal to marginal cost.
B. reduce fixed costs by expanding output.
C. set average cost at its minimum.
D. maximize sales revenue.
Answer: A
You might also like to view...
The equation of exchange states that
a. money supply multiplied by real output equals velocity. b. velocity multiplied by money supply equals real output times the price level. c. money supply divided by velocity equals nominal GDP. d. money supply divided by velocity equals real GDP.
If a local car dealership can sell 8 cars per day at a price of $25,000 each, but must reduce the price to $24,000 to sell one more car, what is the marginal revenue of the 9th car?
A. $216,000. B. $16,000. C. -$1,000. D. $24,000.
NOW and ATS accounts are included in
A. Both M1 and M2. B. M1 only. C. M2 only. D. None of the choices are correct.
Financial capital is used to help finance
A) gross investment but not net investment. B) net investment but not gross investment. C) the purchase of physical capital by firms. D) people's savings. E) consumption expenditure by households.