The marginal approach to profit
a. says that a firm should take any action that adds more to cost than it adds to revenue
b. says that a firm should take any action that adds more to revenue than it adds to cost
c. says that a firm should strive to set profit equal to zero.
d. says that a firms profit is maximized when average revenue equals average cost
e. says that profit should be marginalized
B
You might also like to view...
Which of the following is characteristic of a perfectly competitive firm's demand curve?
A. Its elasticity coefficient is 1 at all levels of output. B. Average revenue is less than price. C. It's the same as the market demand curve. D. Price and marginal revenue are equal at all levels of output.
Compare and contrast NAFTA and the EU in terms of the types of agreements that they are, the institutions that operate under the agreement, and the long term goals of the arrangements
What will be an ideal response?
Monetary policy refers to the government's
A) decisions on how much money to spend. B) decisions on how much money to collect in taxes. C) plans for retiring the national debt. D) management of the money supply and interest rates to achieve macroeconomic objectives.
When price = ATC = MC = MR,
A. economic profits are positive. B. economic profits are zero. C. economic profits are negative. D. opportunity costs are zero.