When Output Changes, the Profit-Maximizing Firm Must Consider

question 56

Multiple Choice

When output changes, the profit-maximizing firm must consider

• A)only whether output price is affected.
• B)only how much total revenue is affected.
• C)the change in marginal cost only.
• D)only how much total cost is affected.
• E)how much both total cost and total revenue are affected.

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Definitions:

Concentration Ratio

A measurement of the market share or output controlled by the largest firms within an industry, used to assess the level of competition.

Costly to Ship

Refers to items or materials that are expensive to transport, typically because of their weight, size, or special handling requirements.

Degree of Monopoly

Measures the level of market control and price-setting power possessed by a monopolist.

Very Localized

Referring to something that is confined to a very small or specifically defined geographic area or community.