Profit per unit is maximized when the difference between ________ and ________ is at a maximum.
Fill in the blank(s) with the appropriate word(s).
price; average total cost
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Given an equal amount of users, if the firm can only set one price, how should the firm price the no-name brand wok?
a. Price low and sell to both the users b. Price high and sell only to the professional chefs c. Price low and sell only to the home users d. All of the above
A firm in a perfectly competitive market can maximize its profits by producing:
A. the level of output where marginal cost equals marginal revenue. B. any level below where marginal cost equals marginal revenue. C. any level beyond where marginal cost equals marginal revenue. D. slightly below its maximal capacity.
According to most economists, reducing automobile emissions to zero would be:
a. optimal. b. inefficient. c. beneficial. d. impossible.
A risk-averse investor compared to a risk-neutral investor would:
A. require a higher risk premium for the same investment as a risk-neutral investor. B. place less focus on expected return than the risk-neutral investor. C. place more focus on expected return and less on return than the risk-neutral investor. D. offer the same price for an investment as the risk-neutral investor.