Assume that a firm is able to cover its variable costs if it operates in the short run. If marginal cost equals $0 for all output levels, then the firm's profit-maximizing output level occurs where

a. total cost is minimized
b. marginal revenue is maximized
c. marginal revenue is minimized
d. marginal revenue equals $0
e. total revenue is minimized

D

Economics

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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for used clothing, an inferior good. Which panel describes what happens in this market as a result of a decrease in income?

A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)

Economics

If you deposit $500 cash into your account at a commercial bank. If it faces a 10 percent required reserve ratio, as a result of your deposit, the bank will:

a. have $450 of additional excess reserves. b. be capable of lending an additional $5,000. c. be capable of lending an additional $500 d. have $50 of additional excess reserves.

Economics