The profit-maximizing output level minimizes average total cost.
Answer the following statement true (T) or false (F)
False
The profit-maximizing output level occurs at the point where marginal revenue equals marginal cost.
You might also like to view...
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant
A) sale decreases B) sale increases C) purchase increases D) purchase decreases
When David Palmisano won the Powerball, he could choose between getting annual installments or taking a lump sum. An economist suggested that David think about
a. marginal product b. the present value of an income stream c. marginal disutility d. the present value of a payment only one year hence e. the demand for labor
Regulators often raise prices instead of lowering them. This is designed to
a. prevent the exit of competitors. b. protect the consumer from cheap products. c. ensure high-quality products. d. ensure workers are adequately paid.
Ceteris paribus which of the following is likely to cause an outward shift of the production possibilities curve?
A.) Investment in telecommunications networks. B.) The deportation of illegal immigrants. C.) An increase in the unemployment rate. D.) A tax increase on factors of production.