Explain how a business chooses to set output
What will be an ideal response?
Revenue - total costs= profit
To maximize profits, a business must identify the amount of labor that will enable the company to achieve the widest gap between revenue and costs.
Economics
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What does the vertical intercept of a production possibilities frontier represent?
What will be an ideal response?
Economics
Refer to the scenario above. Which of the following will happen in equilibrium?
A) Firm A will use Strategy X, and Firm B will use Strategy Y. B) Firm A will use Strategy Y, and Firm B will use Strategy X. C) Both the firms will use Strategy X. D) Both the firms will use Strategy Y.
Economics