Under the total revenue and total cost approach to profit maximization,
a. firms equate total cost and total revenue in order to maximize profit
b. the profit-maximizing output level is equivalent to the total revenue-maximizing output level
c. when total costs are minimized, profits are maximized
d. firms choose the output level where TR - TC is greatest
e. total cost must always exceed total revenue in the long run
D
You might also like to view...
Which of the following is most likely to be characterized by substantial asymmetric information?
a. a soft drink purchased in a vending machine b. a car wash to benefit the local high school band c. a collectible baseball card purchased on eBay d. wireless service that includes unlimited minutes and texting
If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is: a. 8 percent
b. 38 percent. c. 10.9 percent. d. 28 percent.