The Profit-Maximizing Rule P = MC Is

question 20

Multiple Choice

The profit-maximizing rule P = MC is:

• A) followed by a monopoly.
• B) followed by a perfectly competitive firm.
• C) a rule for any firm that wants to maximize profits.
• D) false for all of the above.

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Definitions:

Motivator

An internal or external factor that stimulates individuals to act in a certain way or to pursue particular goals.

Wage Incentive Plans

Various systems that link pay to performance on production jobs.

Restriction of Productivity

Any factor or practice that limits or hinders the efficiency and effectiveness of production processes, thereby reducing overall productivity.

Piece Rate

A payment method where employees are paid a fixed rate for each unit of production completed, rather than receiving a fixed salary.