Marginal profit is the addition to a firm’s total profit from a
A. $1 change in its price.
B. one-unit change in its output.
C. reduction in total cost.
D. reduction in marginal cost.
Answer: B
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The median voter model assumes that voters have single-peaked preferences
a. True b. False
If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question
a. True b. False
Which of the following can be categorized as a composite currency?
a. Italian lira b. European Currency Unit c. Pound d. Australian dollar e. Danish Krone
Draw the demand curve for a good whose price elasticity of demand is equal to infinity. Be sure to label both axes.
What will be an ideal response?