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.
A: equals; all else constant
B: plus; equals
C: minus; equals zero
D: exceeds; by the greatest amount.
举一反三
- 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 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 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.
- Which type of profit maximizing firm will choose to produce where marginal revenue equals marginal cost?
- The break-even point is the point at which ________. A: the total revenue and total costs lines intersect B: demand equals supply C: the production of one more unit will not increase profit D: the company can pay all of its long-term debt E: a firm's profit goal is reached