A Firm Can Maximize Profit (Net Benefit) by Choosing to Produce

question 31

Multiple Choice

A firm can maximize profit (net benefit) by choosing to produce that level of output at which

• A) the difference between the additional revenue from the last unit sold and the additional cost of that unit is maximized.
• B) the additional revenue from the last unit sold equals the additional cost of that unit.
• C) the additional revenue from the last unit sold is just a little more than the additional cost of that unit.
• D) total revenue equals total cost.
• Questions 30 through 33 refer to the following:
• A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year.

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