In order to maximize its profits, a price-taking firm should produce the level of output at which:
A) total revenue = total cost.
B) average revenue = average cost.
C) variable revenue = variable cost.
D) marginal revenue = marginal cost.
D
Economics
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One of the ways the market for used cars copes with the problems associated with private information is through the offering of
A) leases. B) warranties. C) low interest rates. D) low prices.
Economics
The upward-sloping character of the labor supply schedule assumes that the ________
A) the substitution effect is equal to the income effect B) the substitution effect is larger than the income effect C) the substitution effect is smaller than the income effect D) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage
Economics