The fundamental rule of profit maximization for firms is to produce where:
a. MR = MC.
b. ATC is minimized.
c. quantity of output is maximized.
d. price is maximized.
e. total revenue is maximized.
a
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Define the short-run Phillips curve
What will be an ideal response?
If a recession were to reduce the demand for loans, ceteris paribus,
A) the interest rate will increase. B) the interest rate will not change. C) the interest rate will decrease. D) the number of loans will increase.
Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are wary of competing retailers' ability to "free ride" on their efforts d. All of the above