Total profit is maximized
A. where the difference between total revenue and total cost is greatest.
B. at that output level where marginal revenue equals average cost.
C. where total revenue is at a maximum.
D. at the point where all variable costs are covered.
Answer: A
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If average labor productivity in two countries is the same, average living standards will be lower in the country with:
A. the smaller population. B. the larger population. C. the lower share of population employed. D. the higher share of population employed
If a firm spends money on advertising, its gross profit is ________ its net profit.
A) greater than B) exactly twice C) equal to D) less than
When demand is unit elastic, a 10 percent change in the price of the good
A) will cause a change in quantity demanded of less than 10 percent. B) will cause a change in quantity demanded equal to 10 percent. C) will cause a change in quantity demanded greater than 10 percent. D) will not cause any change in quantity demanded.
The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit?
a. 3. b. 9. c. 25. d. 31. e. The amount cannot be determined from the marginal utilities.