A firm in a perfectly competitive market maximizes profits when it finds
A. the quantity at which total revenue minus total cost is the greatest.
B. the quantity at which total revenue equals total cost.
C. the quantity at which total revenue is maximized.
D. the price at which total revenue minus total cost is the greatest.
Answer: A
You might also like to view...
A demand schedule
A) shows that demand is on schedule. B) is a graph showing a relationship between the quantity demanded and the price of a good. C) shows the quantity demanded at one price. D) is a list of the quantities demanded at each different price when all other influences on buying plans remain the same. E) shows how the demand changes when the supply changes.
Refer to the above figure. If a price floor of $5 was set
A) the quantity sold would be 80 units. B) the quantity sold would be 60 units. C) the quantity demanded would be 100 units. D) there would be a shortage of 20 units.
Studies by the World Bank have underscored the successes of countries that have adopted trade liberalization policies
a. True b. False
Which of the following most accurately indicates the political incentive to spend and/or tax?
a. Politicians will find tax increases more attractive than increases in government expenditures. b. Voters will generally support higher taxes in order to eliminate budget deficits. c. Politicians are rewarded for raising taxes and punished for providing programs that benefit their constituents. d. Politicians are rewarded for providing programs that benefit their constituents and punished for raising taxes.