A firm in a perfectly competitive market maximizes profits when it finds
A) the price at which total revenue minus total cost is the greatest.
B) the quantity at which total revenue minus total cost is the greatest.
C) the quantity at which total revenue equals total cost.
D) the quantity at which total revenue is maximized.
B
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Refer to above Table 2-1. What is the total amount of leakages?
A) 530 B) 1080 C) 970 D) 550
The more specialized and highly valued a worker's skills are,
a. the lower is her stock of human capital. b. the more likely she is to earn economic rent. c. the less likely she is to sell her skills on the primary labor market. d. the more likely she is to be directly affected by minimum wage legislation.
Diminishing marginal product exists when the production function becomes flatter as inputs increase
a. True b. False Indicate whether the statement is true or false