Explain the rules for finding maximum profit using total revenue and total cost and marginal revenue and marginal cost
Maximum profit is where total revenue exceeds total cost by the maximum amount. If the firm were to increase output beyond this point, the addition to TC ? MC would exceed the addition to TR ? MR. So the firm should stop once MC catches up to MR. That is, to maximize profit, stop at the output where MR = MC.
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Lack of competition in the United States banking industry can be attributed to
A) the fact that competition does not benefit consumers. B) the fact that branching has eliminated competition. C) recent legislation restricting competition. D) nineteenth-century populist sentiment.
In periods of relatively high levels of unemployment, a classical economist would advocate which of the following governmental policies to move the economy toward full employment?
A. Wage and price controls B. None or a laissez-faire policy C. Fiscal policy D. Monetary policy