The golden rule of profit maximization states that any firm maximizes profit by producing where
a. demand is unit elastic, and total revenue is greatest
b. price equals average revenue
c. price equals marginal revenue
d. price equals marginal cost
e. marginal revenue equals marginal cost
E
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One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
Contrast the actions the central bank of a country would take to increase the quantity of money in an economy with the actions it would take to produce the opposite effect
Brenda says, "You would have to pay me $50 to attend that pro wrestling event." For Brenda, the marginal utility of the event is:
A) zero. B) positive, but declines rapidly. C) negative. D) positive, but less than the ticket price.
Which of the following is NOT a club good?
A) cable television B) a rock concert C) a country club D) a baseball bat