Utility maximization is always achieved where total revenue is maximized.
Answer the following statement true (T) or false (F)
False
Utility maximization is determined by the consumption of a good, whereas total revenue is determined by the price and quantity sold of a good.
You might also like to view...
The outcome of regulating a natural monopoly using the marginal cost pricing rule is
A) that the firm makes a normal profit. B) that the firm maximizes its profit. C) that consumer surplus is less than what it would be if the firm maximized its profit. D) an efficient level of production. E) that the firm makes an economic profit.
Positive economic analysis _____
a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about "what ought to be"