To Maximize Profit,a Price Taker Should Produce the Output Level

question 28

Multiple Choice

To maximize profit,a price taker should produce the output level where

• A) total cost is the lowest.
• B) variable cost is the lowest.
• C) total revenue is the highest.
• D) price equals marginal cost.
• E) marginal cost is the lowest.

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Definitions:

Chronic Hormone Secretion

The continuous or long-term release of hormones into the bloodstream, often maintaining long-standing levels of certain hormones affecting the body's state.

Negative-feedback

A regulatory mechanism in biological systems where the output of a process inhibits or lessens the process's activity.

Neural-feedback

A process through which information about the output of a neural system is returned to it, to adjust its future output and behavior.

Positive-feedback

A biological mechanism whereby a stimulus intensifies the production of a product, leading to an amplification effect in the system.