A profit-maximizing firm will produce the level of output at which:
a. average revenue equals average cost.
b. average revenue equals average variable cost.
c. marginal revenue equals marginal cost.
d. marginal cost equals average revenue.
e. marginal revenue exceeds marginal cost by the maximum amount.
c
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The demand for money curve is drawn with
A) the interest rate on the vertical axis and the curve sloping down. B) the interest rate on the vertical axis and the curve sloping up. C) nominal Gross Domestic Product (GDP) on the vertical axis and the curve sloping up. D) nominal Gross Domestic Product (GDP) on the horizontal axis and the curve sloping down.
When the trade-offs you face are determined by the choices someone else will make, behaving rationally involves:
A. behaving strategically. B. ignoring the behavior of other actors. C. acting in a way to help others. D. All of these statements are true.
When a nation totally bans trade with another country, it is imposing a(n):
a. tariff. b. embargo. c. quota. d. none of these.
Suppose the price elasticity of demand for a product is 1 . If a supplier wants to increase revenue, what change should it make to price, if any?