To maximize profits, a firm should continue to increase production of a good until:
A. profits are zero.
B. total revenue equals total cost.
C. average cost equals average revenue.
D. marginal revenue equals marginal cost.
Answer: D
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Using the data in the above table, gross private domestic investment equals
A) $250. B) $260. C) $460. D) some amount that cannot be determined without more information.
Which of the following is an example of a barrier to entry?
a. Crystal charges a higher price than her competitors for her hair-styling services. b. Dan charges a lower price than his competitors for his dry-walling services. c. Jackie offers free samples of her loose-meat sandwiches to attract new customers. d. Roseanne obtains a copyright for a short story that she wrote and published.
Which statement is true?
A. The federal personal income tax is a proportional tax. B. The cigarette tax is an excise tax. C. The tax on gasoline is a direct tax. D. None of these statements are true.
Consumers are most satisfied when
A) all of their income has been saved. B) the total level of utility is as high as possible. C) goods are bought "on sale." D) they save more than they spend.