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. both TR and TC are at a maximum.
D. profits are at a maximum or losses are at a minimum.
Answer: D
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What is the drawback of forcing a natural monopolist to use a marginal cost pricing rule?
A) No deadweight loss is eliminated. B) The firm will incur an economic loss. C) The gain in consumer surplus will be less than the loss in producer surplus, thus creating additional deadweight loss. D) None of the above answers is correct.
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
A) unnatural unemployment. B) seasonal unemployment. C) structural unemployment. D) cyclical unemployment. E) frictional unemployment.
A game in which players as a group gain at the end of the game is referred to as
A) zero-sum game. B) negative-sum game. C) positive-sum game. D) tit-for-tat game.
The equation of exchange is?
a. M x V = P x Y b. M x P = V x Y c. M x Y = V x P d. none of the above represent the equation of exchange