Profit- Maximizing Firms Increase Production Up to the Point at Which

question 7

Multiple Choice

Profit- maximizing firms increase production up to the point at which the last unit of the variable factor employed adds

• A)nothing to marginal cost.
• B)just as much to revenue as to profit.
• C)positive economic profits.
• D)nothing to marginal revenue.
• E)just as much to revenue as to cost.

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Definitions:

Check Valve

A valve that allows fluid to flow through it in only one direction, preventing backflow.

Vacuum Power Brake

A brake booster that uses a vacuum to multiply the force the driver applies to the brake pedal, reducing effort and improving response.

Vacuum Booster

A device that uses engine vacuum to increase the force applied to the brake pedal, thereby enhancing braking power and efficacy.

Electronic Stability Control

A safety technology that automatically detects and reduces loss of traction (skidding), helping to prevent the vehicle from veering off course.