A competitive firm will maximize profits at that output at which:
A. total revenue exceeds total cost by the greatest amount.
B. total revenue and total cost are equal.
C. price exceeds average total cost by the largest amount.
D. the difference between marginal revenue and price is at a maximum.
Answer: A
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Silvio's Pizza is a small pizzeria. The firm's production function is shown in the table above
Suppose that Silvio's costs include only the cost of renting ovens, which is $100 per oven per week, the labor cost, $280 per worker per week, and the opportunity cost of Silvio's entrepreneurship, $1,000 per week. Suppose Silvio's uses Plant 2. If Silvio hires the 4th worker, the firm will experience ________ marginal returns. A) diminishing B) increasing C) constant D) zero
A payment of $105 next year can be more valuable than a payment of $100 now
a. True b. False
Equilibrium price must decrease when demand
a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. c. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously. d. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously.
The individual labor supply curve is positively sloped in the short run.
Answer the following statement true (T) or false (F)