Suppose That a Price Taker Has a Marginal Cost of $8

question 51

Multiple Choice

Suppose that a price taker has a marginal cost of $8 when producing 550 units of output.In order for this to be the point of profit maximization,

• A) total revenue must exceed total cost.
• B) price must be less than $8.
• C) total cost must exceed total revenue.
• D) price must be equal to $8.
• E) total revenue must exceed $4,400.

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Definitions:

Good Faith Purchaser

An individual who buys something without knowledge of a prior claim or lien against the property, therefore acquiring clean title.

Risk Of Loss

The potential for an asset to be lost, damaged, or diminished in value, and the question of who bears this risk under the terms of a contract.

Agreement Of Parties

This refers to the mutual understanding and consent between parties involved in a contract regarding the terms and conditions stated.

Voidable Title

A title to goods that is valid until annulled or rescinded due to certain conditions, such as fraud or misrepresentation.