A perfectly competitive firm will maximize its profit at the level of output where the vertical distance between its total revenue curve and total cost curve is the largest. This is the same level of output where
A) average total cost equals marginal revenue.
B) marginal revenue equals marginal profit.
C) marginal revenue equals marginal cost.
D) marginal revenue equals average revenue.
Answer: C
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According to Matthew Slaughter, as reported in the Case in Point on outsourcing, which of the following is a reason that suggests outsourcing might actually increase domestic employment?
A) Reduced costs make domestic firms more likely to expand the quantities they produce. B) Lower costs may lead firms to increase the scale of their operations which could generate more domestic employment. C) A firm that engages in outsourcing is likely to increase its scope of operations. D) all of the above
"If Ivan says he is indifferent between the consumption of a new pair of jeans or a set of earrings, he means that he does not want either product." Is the previous analysis CORRECT? Explain your answer
What will be an ideal response?