Which is always TRUE at a firm's profit-maximizing rate of production?
A. Marginal Revenue = Marginal Cost
B. Marginal Revenue > Marginal Cost
C. The total revenue curve lies below the total cost curve.
D. Total Revenue = Total Costs
Answer: A
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Mikki works five hours at a DVD store the night before her economics exam. She earns $75, but her exam score is 10 points lower than it would have been had she stayed home and studied. Her opportunity cost of working is the
a. five hours she worked b. $75 she earned c. 10 points she lost on her exam d. time she could have spent studying e. zero, because she made an economic choice from among her several possibilities
A cartel is
A. a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves. B. a government-approved organization for the exchange of technical information among firms. C. a form of competition among oligopolists. D. a regulated industry that is officially permitted to set the price of its product above long-run average total cost.
International trade exists because countries
A) can make themselves better off through trade. B) want to be neighborly with each other. C) want to be political allies. D) want to improve diplomatic relations with each other. E) want to avoid war with each other.
Bank A has $25,000 in total reserves, and zero excess reserves. The required reserve ratio is 5 percent. Bank A has total deposits of
a. $1,250. b. $25,000. c. $250,000. d. $5,000,000