Marginal revenue equals marginal cost at an output of 15 units. At this output, marginal revenue equals $30, average variable cost equals $20, and average total cost equals $25. In the short run, a profit-maximizing firm will earn a profit of
A. -$75.
B. $0.
C. $75.
D. $150.
Answer: C
You might also like to view...
The paradox of thrift says that the more people try to save, the more
a. income rises, causing saving to rise more than intended b. consumption falls, causing saving to rise by more than intended c. consumption rises, causing saving to fall d. income falls, causing saving to remain unchanged or even fall e. income rises, causing saving to fall
Some people prefer more risky projects than less risky projects. But some people prefer less risky projects to those that are more risky. What explains this behavior?
What will be an ideal response?
Public goods are always provided by the government because private markets do not have an incentive to provide them.
Answer the following statement true (T) or false (F)
Positive statements contain mostly
A. opinions and conditions. B. logical arguments mixed with statements of opinion. C. bias. D. facts and predictions.