What is the value of marginal profit at the profit-maximizing output?
Marginal profit is the difference between marginal revenue and marginal cost. When a firm maximizes profit, the last unit of output adds equal amounts to revenue and cost. Therefore, at the profit-maximizing output marginal profit is zero.
Economics
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Signals solve the adverse selection problem
A) if the signal is an advertisement placed in the New York Times or other top-tier publication. B) only if the signal is viewed as credible. C) when the signal is expensive to produce. D) if the signaling firm is known to be a profit-maximizer.
Economics
Consumption or household spending of an economy comprises of both consumer spending and business spending
a. True b. False Indicate whether the statement is true or false
Economics