A perfectly competitive firm maximizes its profit by producing at the point where
A) total revenue equals total cost.
B) marginal revenue is equal to marginal cost.
C) total revenue is equal to marginal revenue.
D) total cost is at its minimum.
E) total revenue is at its maximum.
B
You might also like to view...
In a small open economy, describe what happens when an increase in wealth causes national saving to decline. Explain the impact on the real interest rate, saving, investment, net exports, and absorption in equilibrium
What will be an ideal response?
If the United States and Canada trade hydro-powered electricity for Hollywood films, what type of trade does this represent?
What will be an ideal response?
Refer to the information provided in Figure 30.2 below to answer the question(s) that follow.
Figure 30.2Refer to Figure 30.2. Labor productivity at time t1 is
A. larger than labor productivity at time t2. B. larger than labor productivity at time t4. C. larger than labor productivity at time t3. D. larger than labor productivity at time t2, but less than labor productivity at time t3.
Related to the Economics in Practice on page 10: A study on the effect of roommates on college grades found that there were strong roommate effects on grade point average, effort in school, and fraternity membership. Which of the following is an example of a normative statement concerning this study?
A. In order to maintain a high grade point average, students should only choose roommates who have a high grade point average. B. The effects of roommates on grade point average are strong. C. The effects of roommates on effort in school are strong. D. The effects of roommates on fraternity membership are strong.