A. costs are minimized
B. revenue is maximized
C. average cost is less than average revenue
D. marginal cost equals marginal revenue
Related Mcqs:
- Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?
A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry. - Firms are assumed to ________ costs and to ________ profits?
A. incur, desire
B. pay, make
C. charge earns
D. minimize, maximize - The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
A. international dumping
B. countervailing duties
C. Strategic trade policy
D. export promotion policy - Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?
A. $100, 2 million barrels per day $60 million
B. $80, 4 million barrels per day $70 million
C. $60, 6 million barrels per day, $20 million
D. $40, 8 million barrels per day, $0 million - Economic profits are ?
A. the difference between total revenue and total costs.
B. anything greater than the normal opportunity cost of investing
C. the opportunity costs of all inputs
D. a rate of profit that is just sufficient to keep owners and investors satisfied - In monopoly when abnormal profits are made ?
A. The price set is greater than the marginal cost
B. The price is less than the average cost
C. The average revenue equals the marginal cost
D. Revenue equals total cost - A monopoly is able to continue to generate economic profits in the long run because ?
A. there is some barrier to entry to that market
B. Potential competitors sometimes don’t notice the the profits.
C. the monopolist is financially powerful.
D. antitrust laws eliminate competitors for a specified number of years.
E. of all of the things described in these answers - If firms earn normal profits ?
A. They will aim to leave the industry
B. Other firms will join the industry
C. The revenue equal total costs
D. No profit is made is accounting terms - Successful service companies focus their attention on both their customers and their employees they understand ________ which links service firm profits with employee and customer satisfaction ?
A. internal marketing
B. service-profit chains
C. interactive marketing
D. service differentiation - Public limited companies may not maximize their profits because ?
A. they are afraid of encouraging takeovers.
B. shareholders have little control over managers.
C. shareholders want higher dividends.
D. both the first and third option.
