If a firm equates MR and MC, then:
A. TR is at a maximum, and TC is at a minimum.
B. output is at a maximum.
C. both TR and TC are at a maximum.
D. profits are at a maximum or losses are at a minimum.
Answer: D
You might also like to view...
A perfectly competitive firm can maximize profits by producing the quantity at which MR exceeds MC by the greatest amount.
Answer the following statement true (T) or false (F)
If Cov(z,x) ? 0, then z and x are correlated.?
Answer the following statement true (T) or false (F)
If the labor market for doctors is perfectly competitive, then an increase in the demand for doctors is likely to cause:
A. doctors' wages to increase. B. the supply of doctors to fall. C. the working conditions of doctors to deteriorate. D. a persistent shortage of doctors.
Refer to the information provided in Table 31.1 below to answer the question(s) that follow.Table 31.1PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 60 50 2203 70 50 2354 80 50 245Refer to Table 31.1. From Period 2 to Period 3, the marginal return to labor is equal to
A. 0.67. B. 1.5. C. 3.36. D. 3.76.