If the Production Cost of the Firm Allows It,the Regulatory

question 67

Multiple Choice

If the production cost of the firm allows it,the regulatory policy that leads to the maximum total economic surplus is one that sets the production level where price equals

• A) total cost.
• B) average fixed cost.
• C) marginal cost.
• D) marginal revenue.
• E) marginal profit.

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Definitions:

Pentanamide

An organic compound characterized by the presence of a five-carbon chain terminated with an amide group, with the formula CH3(CH2)3CONH2.

1-Pentanamine

An organic compound, a type of primary amine with the chemical formula C5H13N, used in chemical synthesis and as an intermediate.

Reagent

A substance or compound added to a system to cause a chemical reaction or test for a reaction.

Nitrile

An organic compound containing the cyano group (-C≡N), characterized by a carbon triple-bonded to a nitrogen atom.