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.
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.
举一反三
- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its ____ A: marginal revenue B: average total cost C: average variable cost. D: average fixed cost.
- In short run the shutdown point is that point at which A: price equals marginal cost. B: average fixed cost equals marginal cost. C: average variable cost equals marginal cost. D: average total cost equals marginal cost.
- A competitive firm maximizes profit by choosing the quantity at which ( ) A: average total cost is at its minimum. B: marginal cost equals the price. C: average total cost equals the price. D: marginal cost equals average total cost.
- A profit-maximizing monopolist will produce the level of output at which A: average revenue is equal to average total cost. B: average revenue is equal to marginal cost. C: marginal revenue is equal to marginal cost. D: total revenue is equal to opportunity cost.
- To maximize profit, the monopolist produces on the ________ portion of the demand curve where ________. A: elastic; price equals marginal cost B: elastic; marginal revenue equals marginal cost C: inelastic; price equals marginal revenue D: inelastic; marginal revenue equals marginal cost