A profit maximizing firm selects output such that

A) average profit is maximized.
B) total profit is maximized.
C) marginal profit is maximized.
D) Both A and B.

B

Economics

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According to Nakamura and Steinsson's research, prices are ________ sticky than Bils and Klenow found because the latter failed to account for ________

A) more; sales B) more; taxes C) less; taxes D) less; sales

Economics

Assume that MPS is 0.4. If spending increases by $8 billion, then real GDP will increase by

A. $8 billion. B. $15 billion. C. $20 billion. D. $13.3 billion.

Economics