In the Short Run, a Profit- Maximizing Firm Will Expand

question 67

Multiple Choice

In the short run, a profit- maximizing firm will expand output

• A) until total revenue equals total cost.
• B) as long as marginal revenue is greater than marginal cost.
• C) until marginal revenue equals average variable cost.
• D) as long as marginal cost is greater than marginal revenue.
• E) until marginal cost begins to rise.

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Definitions:

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the second-highest bid price.

Sealed Bid

A method of auction where all bids are submitted confidentially, with the highest bidder winning.

Bid-Rigging Cartel

A secretive agreement between competitors to fix bidding processes to ensure a predetermined outcome.

Winning Bid

The highest offer made in an auction that wins the item or contract being auctioned.