If Profits Depend on Both How Much Is Produced (Output)and

question 48

Multiple Choice

If profits depend on both how much is produced (output) and on the level of advertising,then a profit-maximizing firm should choose the levels of output and advertising at which

• A)the marginal revenue of output equals the marginal cost of output.
• B)the addition to total revenue of the last unit of advertising equals the addition to total cost of the last unit of advertising.
• C)total revenue equals total cost for both output and advertising.
• D)both a and b
• E)both b and c

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Definitions:

SDS Notebook

A binder or digital collection of Safety Data Sheets which provide detailed information about the properties and handling instructions for hazardous chemicals.

Oil-Immersion Lens

A type of microscope lens used with a drop of oil to increase the resolution of the image seen through the microscope by reducing the refraction of light.

Oil

A viscous liquid derived from petroleum, used as fuel and in various industrial applications, known also for its presence in seeds, fruits, and other parts of plants.

Quality Assurance

A process of ensuring that products, services, or processes meet specific standards or requirements, often through systematic review and evaluation.