Firms Are Assumed to Maximize

question 126

Multiple Choice

Firms are assumed to maximize

• A)inputs.
• B)profits.
• C)wages.
• D)output price.
• E)output quantity.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

MR = MC

An economic principle where a firm maximizes its profit when its Marginal Revenue equals Marginal Costs.

Marginal Revenue

The extra income obtained from the sale of an additional unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase.

Quantity Axis

A graphical representation element used in economics to indicate quantities, such as quantities of goods produced or sold.