A firm seeking to maximize economic profits should produce at the output at which
A. total revenue equals total cost.
B. marginal revenue equals average revenue.
C. marginal revenue equals marginal cost.
D. average revenue equals average cost.
Answer: C
You might also like to view...
When neither player in a game would want to deviate from a particular outcome, taking the opponent's behavior as given, the outcome is
a. a Stackelberg equilibrium. b. Pareto optimal. c. a Nash equilibrium. d. a dominant strategy.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
If the CPI was 180 at the end of 2007, and 216 at the end of 2008, the inflation rate in 2008 was
A) 216 percent. B) 36 percent. C) 18 percent. D) 20 percent. E) 16.67 percent.
If the required reserve ratio is 10 percent, and $1 million in new deposits are made at a bank, then which of the following are true?
a. Required reserves are $100,000 and excess reserves are $900,000. b. Required reserves are $900,000 and excess reserves are $100,000. c. Required reserves are $10,000,000 and excess reserves are $90,000,000. d. Required reserves are $1,000,000 and excess reserves are $9,000,000