If total profit is maximized, then marginal cost must equal marginal revenue
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The four-firm concentration ratio is the percentage of ________ accounted for by the four largest firms in an industry
A) profit B) supply C) total revenue D) total cost E) marginal cost
Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 in expenses on equipment and hairdressing material. Based on this information, what is the amount of her explicit costs?
A) $45,000 B) $45,500 C) $47,000 D) $87,000
If an economy experiences constant opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be?
A. A straight, downward-sloping line. B. Bowed outward or concave from below. C. Bowed inward or convex from below. D. Bowed outward until the two goods are equal, and then bowed inward.
Consider a consumer who is searching for the lowest price for good X. The consumer knows that 75 percent of the time she will find a store charging $10 and 25 percent of the times she will find a store charging $7. The expected benefit from an additional search is:
A. $0. B. $2.25. C. $3. D. $0.75.