A profit-maximizing price searcher will expand output to the point where
a. total revenue equals total cost.
b. marginal revenue equals marginal cost.
c. price equals average total cost.
d. price equals marginal cost.
B
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Explain the "Unfair Trade Practices" argument as a case against free trade
What will be an ideal response?
According to the reflection effect
A) people think harder about losses than about gains. B) people become more risk preferring over time. C) attitudes toward risk are reversed for gains versus loses. D) subjective probabilities on riskier outcomes are weighted heavier than on less risky outcomes.
Refer to the accompanying figure. Suppose this demand curve shows the demand for lattes at a single coffee shop that charges $2.00 for a latte. If the manager wants to increase total revenue, what should the manager do?
A. Increase the price from $2.00 to $2.50. B. Reduce the price from $2.00 to $1.75. C. Reduce the price from $2.00 to $1.00. D. Increase the price from $2.00 to $3.00.
Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What level of Y will yield the maximum net benefits?
A. 600/64 B. 600/32 C. 300/8 D. 300/64