In the above figure, marginal cost and marginal revenue are equal at output
A) Q5.
B) Q1.
C) Q3.
D) Q2.
B
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Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that
A) aggregate demand has been constant while aggregate supply has increased. B) aggregate demand has increased more than aggregate supply. C) aggregate demand has increased while aggregate supply has been constant. D) aggregate demand has increased less than aggregate supply.
Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 24 ascots and 12 bowties would appear
A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.
.If expansionary monetary policy reduces real interest rates in the United States, which of the following is most likely to occur?
What will be an ideal response?
Total profit is maximized at the output level at which the:
A. area between the total revenue and total cost curves is greatest. B. vertical distance between the total revenue and total cost curves is minimized. C. total cost and total revenue curves intersect. D. vertical distance between the total revenue curve and the total cost curve is maximized.