Economic profits are maximized at the point at which
A) marginal revenues equal marginal costs.
B) accounting profit exceeds economic profit.
C) total revenues are greater than total costs.
D) accounting profits are equal to zero.
Answer: A
You might also like to view...
The basics of the ERM in the EC provided for:
A) flexible exchange rates and free capital flows. B) fixed exchange rates based on the U.S. dollar. C) gradual conversion to a common currency (the euro). D) fixed exchange rates based on a weighted basket of currencies formula.
In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of
A) a decrease in the real interest rate. B) a decrease in the buying power of money. C) an increased expectation of a recession that lowers the expected rate of profit from investment. D) a decrease in the foreign exchange rate. E) an increase in the price level.