A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost.
B) marginal revenue exceeds marginal cost by some amount.
C) marginal revenue is maximized.
D) marginal cost is minimized.
E) marginal revenue exceeds marginal cost by the maximum amount possible.
A
You might also like to view...
Increases in ________ typically lead to decreases in private saving
A) the interest rate B) disposable income C) autonomous consumption D) all of the above E) none of the above
JoAnn considers cola and plain sparkling water to be good substitutes. Suppose the price of sugar, a key ingredient used to produce cola, falls. According to the substitution effect, which of the following is most likely to occur?
A. JoAnn will purchase less cola and more sparkling water. B. JoAnn will purchase more cola and less sparkling water. C. JoAnn will purchase more of all goods due to her higher real income. D. JoAnn's demand curve will decrease (shift in), causing her to purchase less cola.