The economic optimum production level for a common property resource occurs where

a. Total revenue equals total costs
b. Average revenue equals marginal cost
c. Average revenue equals average cost
d. Marginal revenue equals total costs
e. Marginal revenue equals marginal cost

Ans: e. Marginal revenue equals marginal cost

Economics

You might also like to view...

The Solow model suggests that economies with the same aggregate production function, ratio of workers to the total population and saving rates will ________

A) trade with one another B) start with different initial levels of per capita income C) possess the same rate of depreciation D) experience convergence

Economics

Inflation

A. has no impact on taxing strategies. B. can be temporarily offset with tax cuts. C. only became a tax problem in the late 1990s. D. generally affects state governments most severely.

Economics