When economic profit is positive,
A: total revenue exceeds total economic cost.
B: the firm’s owners have successfully solved the principle-agent problem.
C: the firm’s owners experience an increase in their wealth.
D: both a and c
E: all of the above
A: total revenue exceeds total economic cost.
B: the firm’s owners have successfully solved the principle-agent problem.
C: the firm’s owners experience an increase in their wealth.
D: both a and c
E: all of the above
举一反三
- The firm maximizes economic profit by finding the rate of output at which total revenue ________ total cost ________ . A: equals; all else constant B: plus; equals C: minus; equals zero D: exceeds; by the greatest amount.
- When a firm's average total cost curve continually declines, the firm is a ( ) A: government-created monopoly. B: natural monopoly. C: revenue monopoly. D: All of the above are correct.
- A firm maximizes profit by operating at the level of output where A: average revenue equals average cost. B: average revenue equals average variable cost. C: total costs are minimized. D: marginal revenue equals marginal cost. E: marginal revenue exceeds marginal cost by the greatest amount.
- Ifthewageexceedsthevalueofthemarginalproductoflabor,thenhiringanotherworker? increases;the;firm's;profit.|decreases;the;firm's;total;cost.|decreases;the;firm's;total;revenue.|decreases;the;firm’s;profit.
- What is the total cost in this outcome (Firm A's total cost + Firm B's total cost)?What is the total cost in the efficient outcome (assuming that the price is $3 and four units are produced in total)?<br/>______