In order to maximize profits, a firm should produce at the output level for which:
a. average cost is minimized.
b. marginal revenue equals marginal cost.
c. marginal cost is minimized.
d. price minus average cost is as large as possible.
b
You might also like to view...
What are the costs associated with government intervention in an economic system? Given that there are costs involved with government intervention in an economy, why do governments still choose to intervene in markets?
What will be an ideal response?
A(n) _____ is a budget philosophy that was followed prior to the Great Depression that aimed at matching annual revenues with outlays, except during war time
a. annually balanced budget b. annual surplus budget c. biennial deficit budget d. biennially balanced budget e. cyclically balanced budget
Compared to First World countries, developing countries would have _____
a. a higher life expectancy b. higher productivity rates c. lower education levels d. lower birthrates e. a higher rate of private investment
What does Says’ law state?
a. Supply creates its own demand. b. Demand creates its own supply. c. Supply and demand always intersect. d. Government determines supply and demand.