Assume the demand curve for T-shirts is Q = 180 -15P or P = 12 - 0.0667Q. When are total revenues maximized?
A. When the price is $8.00
B. When the price is $3.00
C. When the price is $6.66
D. When the price is $6.00
Answer: D
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To arrive at a logical determination of a firm’s optimum output, economists assume that the firm seeks to
a. maximize output. b. minimize cost. c. maximize profit or minimize loss. d. maximize price.
While Modigliani's LCH is similar to Friedman's PIH in several ways, it does differ in that it
A) assumes individuals base their consumption decisions on a time span greater than one year. B) assumes that individuals prefer to maintain a stable consumption pattern. C) attempted to reconcile the seemingly paradoxical cross-section and time-series empirical data. D) gives an important role to assets as a determinant of consumption behavior.
The long-run average total cost (LRATC) curve
a. indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. b. indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes. c. will be falling when diseconomies of scale are present and rising when economies of scale are present. d. is a U-shaped curve. e. is both a and d above.
which shows the production possibilities frontier for education and food. The opportunity cost of moving from point c to point b is _____
What will be an ideal response?