Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good.
B) MR = MC.
C) the derivative of the profit function with respect to output is zero.
D) All of the above.
D
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Refer to Table 6-6. Based on the data in the table, between a price of $9.99 and $14.99, the demand for books is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
A firm engages in price discrimination when it:
A. charges different prices for different units of different goods. B. charges the same price for different units of the same good. C. charges a higher price for units for which the willingness to pay is high than for those units for which the willingness to pay is low. D. charges a lower price for units for which the willingness to pay is high than for those units for which the willingness to pay is low.
The establishment of a government redistributive program such as price supports creates _____
a. higher consumer consumption b. above-normal annual profits c. a transitional gain d. independency among recipients
Social Security was established in
a. 1902 b. 1919 c. 1935 d. 1946