The Firm Will Make the Most Profits If It Produces

question 158

Multiple Choice

The firm will make the most profits if it produces the quantity of output at which

• A)marginal cost equals average cost.
• B)profit per unit is greatest.
• C)marginal revenue equals total revenue.
• D)marginal revenue equals marginal cost.

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Definitions:

Normative Social Influence

The influence of other people that leads an individual to conform in order to be accepted and liked by the group, even if it means going against their own beliefs or behaviors.

Persuasive Arguments Theory

A theory that focuses on how the quality and the quantity of arguments can influence attitude change and persuasion.

Social Facilitation Theory

The theory that the presence of others enhances the performance on simple tasks but may impair performance on complex tasks.

Polarized Positions

Situations or opinions that are drastically divided between two extremes, with little to no middle ground or compromise.