If a firm equates MR and MC, then:
a. TR is at a maximum, and TC is at a minimum.
b. output is at a maximum.
c. losses are at a maximum.
d. profits are at a maximum or losses are at a minimum.
e. both TR and TC are at a maximum.
d
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The marginal propensity to consume (MPC) is the
A. percentage by which disposable income increases when consumption increases by 1%. B. percentage by which consumption increases when disposable income increases by 1%. C. amount by which disposable income increases when consumption increases by $1. D. amount by which consumption increases when disposable income increases by $1.
In recent years, economists have come to believe that full employment in the U.S. economy occurs at an unemployment rate between:
a. 1.0 and 2.0 percent. b. 2.5 and 3.5 percent. c. 4.5 and 5.5 percent. d. 6.5 and 7.5 percent.
Jane stitched a prom dress which she could have bought for $180 from a store. Which of the following will happen if she keeps the dress for herself?
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.