The profit maximizing or loss minimizing quantity of output for any firm to produce exists at that output level in which:
a. total revenue is maximized.
b. total cost is minimized.
c. marginal cost is minimized.
d. marginal revenue equals marginal cost.
d
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What is an opportunity cost?
What will be an ideal response?
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than 1. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?
The international equilibrium price is the point at which:
a. the domestic supply curve of one country intersects the domestic demand curve of another. b. the domestic demand and supply curves of a country intersects each other. c. the export supply curve of one country intersects the import demand curve of another. d. the domestic demand of the trading partners become identical. e. the domestic supply of the trading partners become identical.
A rightward shift of the entire demand curve
A. might be due to a decline in income if it is a normal good. B. might be due to an increase in income if it is an inferior good. C. might be due to a tax increase on the product. D. might be due to an increase in population.