When a firm produces at a technically efficient output level, it is
A. Using the fewest resources to produce a good or service.
B. Producing the output at the minimum MC curve.
C. Producing the best combination of goods and services.
D. Producing the output where the AVC curve is at a minimum.
Answer: A
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The more profits are reinvested into the firm, the
A) less there is available to distribute to bondholders. B) less there is available to distribute to stockholders. C) more the firm will be able to raise in sales of new issues to stock. D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.
The amount of interest owed on a loan of $40,000 after a year at an interest rate of 4 percent is:
A. $1,600. B. $41,600. C. $40,400. D. $160.
Refer to the accompanying table. If the price of a t-shirt is $6 and the price of a sweater is $80, then the rational spending rule is satisfied when the consumer purchases ________ t-shirts and ________ sweaters. UnitsUtils Per Year from T-shirtsUtils Per Year from Sweaters0001754002135720318096042101120
A. 4; 4 B. 3; 4 C. 4; 3 D. 4; 1
Refer to Figure 8.8. If the market price of soybeans falls to $8, then to maximize profits this farmer should produce A) 200 bushels of soybeans. B) 700 bushels of soybeans. C) 1,000 bushels of soybeans. D) a level of output that is indeterminate from this information.