A monopolistically competitive firm finds its profit-maximizing rate of output by equating
A) the marginal revenue of advertising with the marginal cost of advertising.
B) average revenue and average total cost.
C) price and marginal cost.
D) marginal revenue and marginal cost.
D
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Sales agents being paid a fixed commission on the sales are more likely to
a. Tell their bosses that they need to price higher to make sales b. Tell their bosses that they need to price lower to make sales c. Not say anything to their boss d. None of the above
The slope of the supply of loanable funds curve represents the
a. positive relation between the real interest rate and investment. b. positive relation between the real interest rate and saving. c. negative relation between the real interest rate and investment. d. negative relation between the real interest rate and saving.
If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
A. rise. B. stay the same. C. fall. D. either rise or fall, but it is impossible to determine which.
In the Social Security system, the tax receipts from today's workers are
A. paid into the federal government's general revenue to be used for any government expenditure. B. paid into an account in the employee's name and saved and invested for that individual until he or she retires. C. all paid into Medicare. D. used to pay benefits to retired and disabled workers and their dependents today.