The profit of a firm is maximized when:
a. marginal revenue is maximum.
b. marginal revenue is greater than marginal cost.
c. marginal revenue is equal to marginal cost.
d. marginal cost is minimum.
e. marginal revenue is less than marginal cost.
c
You might also like to view...
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for used clothing, an inferior good. Which panel describes what happens in this market as a result of a decrease in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Changing the ownership of the ocean from common property to private property would
A) ensure that this resource would be allocated in a more efficient manner. B) ensure that this resource would be allocated in a less efficient manner than under common property rights. C) not be economically desirable. D) result in no appreciable change in efficiency of utilization of this resource.
A production function represents:
A. the relationship between the quantity of inputs and the quantity of outputs. B. the relative values of the inputs and modes of production. C. the relative costs of the inputs across various modes of production. D. the relationship between the cost of the inputs and the revenue generated by the outputs.
If the demand for a product decreases, then we would expect equilibrium price
a. to increase and equilibrium quantity to decrease. b. to decrease and equilibrium quantity to increase. c. and equilibrium quantity to both increase. d. and equilibrium quantity to both decrease.