If a firm chooses to produce output at the point where MR equals MC,
a. then TR - TC will be maximized if there is a profit
b. economic profits will be zero
c. there will be positive accounting profits
d. there will be positive economic profits
e. average cost must equal average revenue
A
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Mick Jagger, a former student at the London School of Economics, once sang, “You can’t always get what you want, but if you try sometime, you just might find you can get what you need.” Another statement of the basic economic principle expressed in this lyric is that
A. rational decisions are not always possible. B. you can allocate your resources to what gives you the highest value. C. you can create the supply to meet your own demand. D. you can maximize social welfare by making optimal decisions.
In examining two variables, we find that as one variable changes, the other changes. These variables are said to be
A) statistics. B) independent. C) casually related. D) correlated. E) significantly related.
In 1999, both the equilibrium price and equilibrium quantity of widgets increased. Use supply and demand analysis to explain how these changes could have occurred
What will be an ideal response?
Chain-weighted indexes have less bias compared to fixed-weight indexes
a. True b. False Indicate whether the statement is true or false